Boston, MA 01/07/2013 (wallstreetpr) – J.C. Penney Company, Inc. (NYSE:JCP) comes across as the most talked about retailer these days. The company is discussed a lot by investors and analysts wanting to understand what to expect in the stock. What is generally agreed upon when discussing JCP is that the stock is currently under pressure, what is not known is whether its present turnaround efforts will result in celebration or regret for investors.
A closer look at the company’s journey in recent times can help explain some of these concerns. We find that when it was clear that appealing to the affluent shoppers was causing the company to lose customers and thus money, the board decided on a management change. That change ousted Ron Johnson as the CEO and installed Mike Ullman who had been with the company earlier.
Since that management change, J.C. Penney Company, Inc. (NYSE:JCP) has been trying to attract shopper to its stores through discounts and offers. The company is also closing some of its stores in regions where opportunities are few and costs are high. In the process, the company has undergone share dilution to raise funds for its turnaround.
However, there is very little to show for the efforts that have been put in the company so far. Sales were only seen growing in October and November last year by slight margins. Basically, J.C. Penney Company, Inc. (NYSE:JCP) still has a long way to go in returning value to investors. It can also be said that purchasing the stock now is good for long-term holding.
Legal issues
Besides the market challenges where the company is struggling to make sales, it is also wasting a lot of its money in legal issues related to product exclusivity. It beats many analysts why the company would choose to spend money in legal battle when it has the option for out of court settlement. The said legal battle pits J.C. Penney Company, Inc. (NYSE:JCP) against Macy’s, Inc. (NYSE:M).
