3 Reasons to Sell J.C. Penney

In the following video, Fool analysts Jeremy Bowman and Isaac Pino examine the bear thesis behind J.C. Penney. CEO Ron Johnson's highly vaunted rebranding strategy has thus far mainly driven customers away. The retailer has gone cash flow-negative, and it may be undone by a crushing debt burden. What's more, the company is heavily in mall real estate that appears to be turning into an albatross in the age of online shopping.

J.C. Penney has been a train wreck whose comeback always seems just around the next earnings corner, but people are beginning to doubt if CEO Ron Johnson can weave the same magic that he did at Apple. For investors wondering whether J.C. Penney is a buy today, you're invited to claim a copy of The Motley Fool's new must-read report on the company. Learn everything you need to know about Penney's turnaround -- or lack thereof -- and as a bonus, you'll receive a full year of expert guidance and updates as key news develops. Simply click here now for instant access.


The article 3 Reasons to Sell J.C. Penney originally appeared on Fool.com.

Isaac Pino has no position in any stocks mentioned. Jeremy Bowman owns shares of Apple. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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twosteppinboop

JCPENNEY WAS ONE OF THE BEST CO.TO SHOP AND WORK FMORE.OR NOT ANY MORE
THEY CARE NOTHING ABOUT THE ASSOCIATES,IT WAS NOT THAT WAY BEFORE.THEY NEED TO CLEAN HOUSE TOP TO BOTTOM. ALL YOUNG KIDS WORKING NEW MANGEMENT THAT KNOWS NOTHING. NO HOURS NO PAY.WHAT NEXT. NOT MY STORE TO SHOP.

January 27 2013 at 1:15 PM Report abuse rate up rate down Reply
raffp

I, was hoping Pennys would have stayed the same. With a few updates. But your clothing is cheap, the woman want the orignal nice casual clothes. Not teeny boober things. We, have enough of those stores around.I use to buy my kids clothes when they were young, at pennys and mine. Now its sad to see the whole store just fall apart .Including the Beauty shop which was doing a booming business for pennys, tell you all got in there and screwed it up also. The fabrics are cheap. Start over Mr. Penny did great work. Get on the right track please. Sales aren"t going to do it all, with out great buyers.The moms in this country want our clothes back.

January 26 2013 at 1:47 AM Report abuse rate up rate down Reply
KarMike

The biggest reason to sell JCP is because they have totally and completely forgotten how to merchandise, and their fearless ( and I mean fearless, even when he should be) leader cannot help because he knows nothing- zilch, nada, zero- about retailing. Apple stores are to retailing as Starbucks is to fine dining and it shows in their stores. Everyone at JCP who actually knew merchandising has long been riffed, fired, retired, r drawn and quartered. Their is NO hope for this fine old company! RIP JCP

January 23 2013 at 5:19 PM Report abuse rate up rate down Reply