J.C. Penney Company, Inc. (JCP): Cash Burn Is An Issue

Conclusion

J.C. Penney Company, Inc. (NYSE:JCP) has been and still is a turnaround story. The question is can it get things right this time around. Negative cash flow is a concern but if customers do begin to return, the shares have significant upside. There is already a lot of bad news and expectations priced into the stock. While some of the changes under previous management did not work, some actually could help drive a revenue recovery, the new brands in particular, when combined with J.C. Penney’s traditional discounting strategy.

Mike Thiessen has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Is This Retailer On The Right Path? originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.