Getting Ready for JC Penney's Earnings Release





It has been almost a year since I started following JC Penney and their turnaround effort. I have to admit that supporting them back then was just a little too early and I have paid the price, losing close to half of my original investment on shares of this company.

Having said that, I still think this company can and will be turned around. Though I still think some of the changes that Ron Johnson introduced are good for the company (e.g. uncluttered stores), It is also true that taking away the coupons were a major mistake that resulted in a precipitated decline on sales. Now that Mike Ullman is back on the reign and coupons have been reinstated I think customers will come back.

JC Penney is scheduled to release earnings this upcoming Wednesday, and based on the latest events and releases from the company, I expect it to give positive news that will give the stock a much needed boost and at the same time scare some short sellers away from it.

I will listen to the conference call and dig in the financials for signs of further improvement and a more robust thesis to back up my position on the company and post them here.

I am long JCP, own Jan '15 Calls 8. I do not work for JC Penney nor I receive any type of compensation for this blog from anyone.




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