Should You Be Worried About J.C. Penney's Default Scare?

J.C. Penney (NYSE: JCP  ) recently received a letter stating that it had breached a covenant regarding a small portion of a $2.8 billion debt -- which, if true, could cause the company to be forced to pay the entire $2.8 billion this year. In the video below, however, Motley Fool consumer goods analyst Blake Bos tells investors that you can often see these types of allegations with companies that are undervalued with a lot of stock sold short, and that based on the market's reaction to the news, it may not be nearly as serious as it sounds.

J.C. Penney has been a train wreck whose comeback always seems just around the next earnings corner, but people are beginning to doubt if CEO Ron Johnson can weave the same magic that he did at Apple. Investors wondering whether J.C. Penney is a buy today are invited to claim a copy of The Motley Fool's new must-read report on the company. Learn everything you need to know about JCP's turnaround -- or lack thereof -- and as a bonus, you'll receive a full year of expert guidance and updates as key news develops. Simply click here now for instant access.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2236949, ~/Articles/ArticleHandler.aspx, 9/20/2014 4:25:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement