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

ratskins (80.29) Submitted: 2/09/07 9:40 PM : Start Price: $79.54 JCP Score: -35.66

JC Penney has gone from sad sack to happy jack in the last five years. For example, return on equity in 2002 was about 2%. It is now 25%. Net profit was less than 1/2 of one percent at that time and it is now over 5%. Furthermore, the shares outstanding have been reduced about 10% over this period. The average annual growth rate over the last five years has been about 39%. There is a lot to like. On the minus side of the ledger, please note that each dollar retained has been reduced to 60 cents, so they are clearly not masters of investment! Also, their debt load is way too high. Still, it appears to be a good place to park some money since it is currently bargain priced (as of feb 9 2007).

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