Ron Johnson and the J.C. Penney Company, Inc. (JCP) Fiasco

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It shouldn’t be any surprise that Yahoo! Inc. (NASDAQ:YHOO)’s shares are up 58% over the last year, while J.C. Penney’s are down 61%.  Nor should the company’s respective earnings per share for last quarter:Yahoo! has $3.29, JC Penney:-$4.49.  Commitment to the workspace can’t fully explain that performance, but it’s part of it.

Can J.C. Penney recover?

One of my basic mantras for my brokerage clients before I retired was, “Look for companies that have a history of making money, with shares that have grown over time and that have good management.” I can’t honestly say that J.C. Penney Company, Inc. (NYSE:JCP) meets any of those requirements right now.

The company has been a titan of American retail for decades and now it’s one of the shakiest retail businesses. Yes, it still has a vast network of stores and some very loyal customers left.  But, there’s no way that J.C. Penney – right now – is investment worthy for any except the riskiest money. If you have some of that risky 5% of your portfolio that you don’t mind taking a high-risk, high-reward risk with J.C. Penney Company, Inc. (NYSE:JCP) might be for you so you can take a chance on the new management turning things around. But it’s not worth anything more than that.

Good luck!

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Nate Wooley has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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