The Hidden Winners From This Train Wreck

The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith discusses topics around the investing world. Everyone loves a comeback story, but with investments, the chips are often stacked against the investor. One of the best examples has been J.C. Penney (NYSE: JCP  ) , which, despite earning a vote of confidence from many competent investors, has erased 30% of its market cap so far this year. The main culprit has been its enormous same-store-sales decline. But all of those shoppers haven't just vanished; they've gone to other, better retailers. Watch the following video to learn about who is feasting off J.C. Penney's weakness.

Not all retail stocks are doomed to failure, though. "The Motley Fool's Top Stock for 2012" is one emerging-market retailer that doesn't need a turnaround, because it's growing gangbusters already. It has taken a proven, winning model from the U.S. and dumped it into a high-growth corner of the world. Our chief investment officer loves this company, and you will, too, after reader our free report. Click here to uncover his pick today.