$JCPNQ: The Brittle Business of Buying Bankrupt Businesses!

For short-term day traders and penny stock lovers, I would love to share a company that currently has a prominent entry point. Since last week, the shares of this company have been oversold, and entering it at this price point ($0.26) appears to be safe – safer if you add a stop loss to reduce the risk. If you’re from the United States, you might’ve heard about J.C. Penney also known as $JCPNQ. And for those who haven’t, then here’s a brief summary.

J.C. Penney is an American store chain for apparel that used to have 840 locations throughout the United States and Puerto Rico. While there has been unfortunate news of J.C. Penney filing bankruptcy, their company is still running through their e-commerce shop. This did in fact caused a drastic drop in share values by the end of last year, but now it’s at the bottom where it’s safer to swing-trade for short term gains.

J.C. Penney / $JCPNQ Market Cap, Volume, And Price Per Share

At the moment, the value of each share for $JCPNQ is worth $0.2650 since the market closed on Friday. When analyzing the chart, the signal presents the stock being oversold. Generally, entering right after an “oversold” phase is the best entry point for many short-term traders. All penny stocks are risky due to the volatility of the market, which is why investors are advised to average down and set stop losses.

With data collected from Yahoo Finance, the average volume presented us with $39,260,226 with an unknown market cap. Moving on to MarketWatch for additional info, there wasn’t any information in regard to the $JCPNQ market cap as well.

While the signs are displaying positive movements for next week after a massive drop, it’s best to be extra cautious when swing-trading with this stock. I wouldn’t recommend this as a long-term investment. Set a stop loss!

J.C. Penney News And Announcements

Within the last week, a number of announcements and reports were released with news affecting the market of $JCPNQ. Here’s what investors/traders should know:

June 24th, 2020: Posted by Yahoo Finance Video, the video mentioned the unfortunate news of J.C. Penney closing another 13 locations. In this video – Brian Sozzi, Alexis Christoforous, and Heidi Chung talked about the closure of these stores.

June 24th, 2020: Posted by Yahoo Finance, the article discussed the reasons for the unfortunate death of J.C. Penney stores. The reasons mentioned in the article:

  1. Terrible management. According to this report, having the right management is the key to having a positive future for a company.
  2. Tons of debt. When stores begin to open, companies generally start off with bank debt to open/refurbish their locations. Since we’re heading towards a recession, the difficulty of handling these bank debts arises.
  3. Competition. Many retailers and companies are dealing with being able to keep up ever since Amazon climbed up the top of e-commerce. With competitors like Amazon, it creates more obstacles for a retail business to survive.

While it’s clear that J.C. Penney / $JCPNQ isn’t a safe long-term investment, the opportunity is at the current price point – or entry point. With the massive drop in value, the stock is oversold, the massive bid size, and current volume – it’s almost perfect to enter for a quick profit. 

Here’s a quick reminder that if you’re planning on entering the market for businesses like this, it’s worth reminding investors to set a stop loss to minimize the risks involved. You can lose 5~10% with stop loss, but if it’s truly the bottom right now, you can expect positive returns. 

Be cautious! This is the type of stock that you wouldn’t want to bag hold. Take your profits whenever possible and don’t let your emotions and greediness get to you. Profit is profit.

Note: This is an investment guide made for $JCPNQ. Please don’t make your financial decision based on this post. Do your due diligence and trade cautiously and strategically to reduce the risks involve in penny stocks especially with companies that filed bankruptcy. 

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