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Mid caps

JCPenney: No CEO, no CFO, no problemo!

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We’ve talked about JCPenney’s… lack of CEO and how that’s a bad thing. However, matters have gotten even worse for the company, with the CFO Jeffrey Davis leaving after just 14 months. It looks like more bad news for a company that has seen its stock drop 45% this year.

 

On Friday… JCPenney stock dropped another 9% and is now trading at $1.60. The company also has over $4 billion in debt. The once-booming retailer has only posted a quarterly profit twice in the last four years. Most recently, the company posted a loss of $101 million and was forced to sell much of its clothing at a substantial discount.

 

So, what now… that’s what investors are asking, but haven’t gotten much of an answer. The retailer has closed 141 stores within the last year and will be closing eight more this year. JCPenney switched from older shopper to younger but is now going back toward middle-aged women. The company plans to update everyone on who it wants its customers to be in November when it reports quarterly earnings. We’re looking forward to it…

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Miscellaneous

Speaking of failing retailers…

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Sears is on the clearance rack… and the company is officially a “penny stock.” The company’s stock is now trading for under $1 and dropped to as low as .85 cents per share on Friday. Sears could also be delisted from the Nasdaq – but that’s a long process and won’t happen until 2019. The stock has had a brutal year, too, down 88%.

 

Today, Sears must… prove to lenders that they can pay $134 million worth of debt due on October 15. The company is running out of time and cash. Sears market value has also fallen below $100 million.

 

You may be too young to remember… Sears was once one of America’s largest retailers and employers. Many Americans bought mass-produced goods for the first time through a Sears catalog. However, by the early 2000s companies like Walmart began beating Sears in both price and selection. And it has been mostly downhill since.

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