Use access key #2 to skip to page content.

inthemoneystock (< 20)

J.C. Penney Company, Inc. Can Double, Triple: See This!

Recs

2

October 04, 2013 – Comments (0) | RELATED TICKERS: BBY , HPQ , JCP

J.C. Penney Company, Inc. (NYSE:JCP) is taking another beating today. The stock is trading at $7.86, -0.55 (-6.54%). Many people are thinking bankruptcy is the only option and where this stock is headed. However, I think emotion is taking hold. In the next year or two there is little chance of that happening. Fear often pushes stocks too far in one direction before a snap back move.

The best examples of fear can be seen in stocks like Hewlett-Packard Company (NYSE:HPQ) and Best Buy Co., Inc. (NYSE:BBY). Hewlett-Packard hit a low of $11.35 in late 2012 before soaring to $27.77. This is well over a 200% gain. Everyone hated it and said it was done. Best Buy hit a low of $11.20 in December 2012 before hitting $39.28. This is an epic move of almost 300%. The stock was also said to be done and going out of business.

When comparing J.C. Penny to these other stocks, the fear and emotion is almost identical. Yes, there is always risk in buying something like this, but then again there is risk in everything. I believe there is a small chance JCP may go out of business in 3 years from now, but even if it does, it will double before that happens. This is what the stock market does. Emotion drives stock prices too far in one direction before a snap back. I like it long under $8.00 per share.

Gareth Soloway
InTheMoneyStocks.com

0 Comments – Post Your Own

Featured Broker Partners


Advertisement