Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of J.C. Penney (OTC:JCPN.Q) fell as much as 10% today, after announcing a massive third quarter loss.

So what: Revenue fell 26.6%, to $2.93 million in the quarter, and the company lost $123 million, or $0.56 per share. The worst part is that same-store sales fell 26.1%.

Now what: The only question is why shares didn't fall further? CEO Don Johnson tried to put a happy spin on the numbers, calling his company a start-up, in a way, but the reality is that the company is a dinosaur. I've never seen same-store sales numbers like that at such a big retailer, and I think this has "sell" written all over it. This stock is probably even a strong short candidate if you can find the shares to do it.

Interested in more info on J.C. Penney? Add it to your watchlist by clicking here.


This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.