J.C. Penney Company, Inc. (JCP)

ChimpInvestor (< 20) Submitted: 6/25/08 1:28 PM : Start Price: $38.07 JCP Score: 6.57

In keeping with my short term 2 month thesis of the worst performing stocks going up either in short covering and providing a long term buy in price... I just bought JCP at 38.32.... JCP is in the retail department stores industry group.

you have to go back to Jan 8, 2004 to find this industry group at these price levels... I only green thumbed 2 of the competitors to JCP in this industry group because I think the rest suck... I like JCP because they are more lower end and low end shoppers will continue to shop while middle market shoppers probably will take a step down in quality for the value buy (e.g. Walmart)... With a long term horizon, people will continue to shop and if you can get a good retailer at 5 year lows then you should pull the trigger...

additionally 35 to 37.5 provides HUGE support on the charts for this stock... considering this was trading at 85 not too long ago and holds no financial toxic paper.... well I like it

at the time of green thumb JCP was rated a 2 star stock... CAPs players rated 99.70 and higher like the stock 6 to 4... which is pretty good considering this is a retailer and we are heading into or are in a recession depending on your definition.... it should be noted that yours truly rarely catches a falling knive when bottom fishing (there is always short term downside when bottom fishing) but sees the risk reward here too good to be true long term... take off the day trader hat and put this in storage

JCP has beaten earnings for four straight quarters and is trading at a peg of 1.06.... their earnings estimates for 2009 are way down, but if you are looking for a two to four year hold then this will outperform the SPY

my recent technical bottom calls are holding up........ my airline play AMR has been working, my regional bank play NCC has been trailing the other regional banks to the upside, but is still positive and my long term builder play PHM has been working like a dog and the industry group has benefited from an analyst upgrade of the industry to overweight... so I just needed a retailer to fill out the oversold group....

Most energy related and steel stocks were way overbought and need to retreat... i was burned on dipping my toe in early on the fertilzer group and that won't happn again until I see a retrace in energy stocks and other commodity plays

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