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JCPNQ -- USA Stock  

USD 0.15  0.00  0.00%

JC Penney is scheduled to announce its earnings tomorrow. JC Penney symbol was changed from JCP on 19th of May 2020. As of 27th of November 2020, Tax Assets is likely to grow to about 195.8 M, while Net Loss Income from Discontinued Operations is likely to drop (1.9 M). As many investors are getting excited about consumer cyclical space, it is fair to recap JC Penney as an investment option.
Published over a month ago
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Is JC Penney (OTC:JCPNQ) outlook still optimistic based on the recent debt level?
The entity has accumulated 2.16 B in total debt. On a scale of 0 to 100, JC Penney holds a performance score of 1. The firm owns a Beta (Systematic Risk) of 3.5093, 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 the market goes up, the company is expected to outperform it. However, if the market returns are negative, JC Penney will likely underperform. Although it is vital to follow JC Penney existing price patterns, it is good to be conservative about what you can do with the information regarding 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 0.29% 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.
Old COPPER financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Old COPPER, including all of Old COPPER's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Old COPPER assets, the company is considered highly leveraged. Understanding the composition and structure of overall Old COPPER debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Old COPPER on a daily basis if you are holding a position in it. Old COPPER 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 Old COPPER stock to be traded above the $1 level to remain listed. If Old COPPER 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 Old COPPER's Liquidity

Old COPPER financial leverage refers to using borrowed capital as a funding source to finance Old COPPER ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Old COPPER 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 Old COPPER's total debt and its cash.

How JCPNQ utilizes its cash?

To perform a cash flow analysis of Old COPPER, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Old COPPER is receiving and how much cash it distributes out in a given period. The Old COPPER cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Is Old COPPER valued appropriately by the market?

The firm reported the revenue of 8.65 B. Net Loss for the year was (1.01 B) with profit before overhead, payroll, taxes, and interest of 4.15 B.

Asset Breakdown

5.9 B
Assets Non Current
3.7 B
Current Assets
Total Assets9.63 Billion
Current Assets3.71 Billion
Assets Non Current5.92 Billion
Tax Assets195.82 Million

Will JC Penney continue to go nuts?

Recent maximum drawdown is at 143.86. JC Penney is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about JC Penney implied risk. 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.

The Bottom Line

Although some companies in the department stores industry are either recovering or due for a correction, JCPNQ may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 27th of November 2020, our ongoing 30 days buy vs. sell advice on the firm is Strong Sell. However, we believe JC Penney is currently undervalued with average probability of distress for the next two years.

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 Old COPPER. Please refer to our Terms of Use for any information regarding our disclosure principles.

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