This Week’s 5 Dumbest Stock Moves: Activision Blizzard, Inc. (ATVI), J.C. Penney Company, Inc. (JCP), Carnival Corporation (CCL)

Page 1 of 2

Stupidity is contagious. It gets us all from time to time. Even respectable companies can catch it. As I do every week, let’s take a look at five dumb financial events this week that may make your head spin.

1. Game over
There seems to be no signs of bottoming out for the video game industry. After three years of steady declines, February proved to be another bad month for the companies catering to diehard gamers.

NPD Group reported on Thursday night that video game software sales plunged 27% in February. Keep in mind that this it on top of — or below — a 20% plunge last February.

Cynics will argue that NPD Group’s gauge measures only traditional retail sales. However, digital sales haven’t been enough to offset the gaming industry’s incessant slide.

Why does this item top the list of dumb stock moves? Well, the country’s two largest video game companies just hit fresh 52-week highs. Top dog Activision Blizzard, Inc. (NASDAQ:ATVI) hit a four-year high yesterday, even though analysts see revenue and earnings declining by 15% and 28%, respectively, this year.

That just doesn’t seem right.

2. Penney for your thoughts
J.C. Penney Company, Inc. (NYSE:JCP) rallied earlier in the week on a rumor that CEO Ron Johnson would be getting fired.

Well, that didn’t happen — and a company spokesman even cleared up that Johnson has no intention of resigning in the near future.

Some seem to believe that Johnson will be able to keep his job if he’s able to stop the brutal slide in sales. J.C. Penney’s sales plunged 25% last year. However, that seems like a terrible approach. J.C. Penney Company, Inc. (NYSE:JCP) saw its net sales fall nearly $4.3 billion this past year. Sales don’t need to hold firm here. J.C. Penney Company, Inc. (NYSE:JCP) needs to make back that $4.3 billion top-line shortfall, and even then it will merely be back to where it was a year ago when sales were so bad that Johnson was brought in to begin wtih.

The news just doesn’t get any easier for the unfortunate mall chain.

Later in the week, reports indicated that lender CIT Group will begin charging J.C. Penney Company, Inc. (NYSE:JCP)’s vendors a 1% surcharge on invoices to offset the chain’s growing credit risk. You just know that this isn’t going to go down well with the chain’s suppliers. They’re already taking a risk selling to a fading retailer and now they have to pay a premium for that right?

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!