J.C. Penney Company, Inc. (JCP): The Company Gets a Rare Win

Other analysts have theorized that the company may sell itself off, or at least a piece of itself, to stay alive. While the company is currently sitting on a decent pile of cash and very little immediate debt, that situation is changing quickly. J.C. Penney is burning through cash, because of a decrease in sales, and it has $200 million in bonds due in 2015.

The bottom line
This is a win for J.C. Penney Company, Inc. (NYSE:JCP), but it’s a very small one. The company desperately needs to get out of court and move on to the business of selling the merchandise it already has. As has been the case for the entire proceeding, Macy’s is still in a comfortable position to sit back and watch the drama unfold, while J.C. Penney twists in the wind. The best J.C. Penney investors can manage now is cautious optimism — and that’s not a great place to be.

The article J.C. Penney Gets a Rare Win originally appeared on Fool.com.

Fool contributor Andrew Marder and The Motley Fool have no position in any of the stocks mentioned.

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