JCPNQ Story

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JCPNQ -- USA Stock  

USD 0.13  0.01  7.14%

It appears that JC Penney will continue to recover much faster as its share price surged up 38.46% today. JC Penney's current daily volatility is 17.65 percent, with a beta of -2.46 and an alpha of -0.81 over DOW. As many millenniums are trying to avoid saving accounts, it makes sense to recap JC Penney a little further and try to understand its current market patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a week ago
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Should you pick up JCPNQ after the recent volatility decline?
JC Penney has accumulated about 852 M in cash with (18 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.64, which can makes it an attractive takeover target, given it will continue generating positive cash flow. The firm owns a Beta (Systematic Risk) of -2.4574, which attests to a somewhat significant risk relative to the market. Let's try to break down what JCPNQ's beta means in this case. As returns on the market increase, returns on owning JC Penney are expected to decrease by larger amounts. On the other hand, during market turmoil, JC Penney is expected to outperform it. Although it is extremely important to respect JC Penney existing price patterns, it is better to be realistic regarding the information on equity price patterns. The way in which we are determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting JC Penney technical indicators, you can at this moment evaluate if the expected return of 0.23% will be sustainable into the future. Please utilizes JC Penney information ratio and the relationship between the maximum drawdown and rate of daily change to make a quick decision on whether JC Penney current price history will revert.
Investing in JC Penney, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding JC Penney along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

Watch out for price decline

Please consider monitoring JC Penney on a daily bases if you are holding a position in it. JC Penney is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as JC Penney stock to be traded above the $1 level to remain listed. If JC Penney stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is JC Penney's Liquidity

JC Penney financial leverage refers to using borrowed capital as a funding source to finance JC Penney ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JC Penney financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between JC Penney's total debt and its cash.

How JCPNQ utilizes its cash?

To perform a cash flow analysis of JC Penney, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash JC Penney is receiving and how much cash it distributes out in a given period. The JC Penney cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. JC Penney Net Cash Flow from Operations is very stable at the moment as compared to the past year. JC Penney reported last year Net Cash Flow from Operations of 428 Million

JC Penney Correlation with Peers

Investors in JCPNQ can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in JC Penney. Diversification will allow for the same portfolio return with reduced risk. The correlation table of JC Penney and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities JCPNQ is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of JCPNQ for more details

What is driving JC Penney Investor Appetite?

JC Penney appears to be out of control, given 1 month investment horizon. JC Penney retains Efficiency (Sharpe Ratio) of 0.0131, which attests that the company had 0.0131% of return per unit of price deviation over the last month. Our outlook to determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for JC Penney, which you can use to evaluate future volatility of the entity. Please utilize JC Penney market risk adjusted performance of 0.3946, and Standard Deviation of 16.45 to validate if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent roll up for JC Penney. What does it mean for insiders?

JC Penney recent standard deviation upswings over 16.45. JC Penney is displaying above-average volatility over the selected time horizon. Investors should scrutinize JC Penney independently to ensure intended market timing strategies are aligned with expectations about JC Penney volatility. JC Penney is a potential penny stock. Although JC Penney may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in JC Penney. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Take On JC Penney

Although many other companies within the department stores industry are still a little expensive, even after the recent corrections, JC Penney may offer a potential longer-term growth to insiders. The inconsistency in the assessment between current JCPNQ valuation and our trade advice on JC Penney is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to JC Penney.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of JC Penney. Please refer to our Terms of Use for any information regarding our disclosure principles.

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