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.
Feb 5, 2013 at 1:41PM
The Motley Fool's industrials analyst, I specialize in 3-D printing and also do my best to stay up-to-date in the fields of robotics and oceanic transportation. Follow me on Twitter, Google+, and/or Facebook below for the most important 3-D printing industry developments and other great stories.
Motley Fool Returns
Stock Advisor S&P 500
Stock Advisor launched in February of 2002. Returns as of 02/20/2020.Join Stock Advisor
Cumulative Growth of a $10,000 Investment in Stock Advisor Calculated by Time-Weighted Return