Tomahawk, WI 8/08/2013 (Basicsmedia) – J.C. Penney Company, Inc. (NYSE:JCP) has been operating its department stores since 1909 when it was founded, with its headquarters being put up in Plano, Texas. JCP has more than 1,000 department stores located in 49 states in the U.S, in addition to another branch in Puerto Rico. Moreover, JCP has embraced the age we are in, where technology plays a major role in business, and has decided to sell its wares to customers online through its website, www.jcp.com. However, should investors favor this company once more?

How Has JCP Been Faring?

By all accounts, JCP has not enjoyed a good 2013, like it may have hoped to. As proof of this, it is worth mentioning that the company’s stock endured a fall of more than 29% at some point during the course of the year. Its CEO, Ron Johnson, was fired and this is never a good sign for any company which is publicly traded at NYSE. However, a close look at its latest performance shows that the company is in a good moment. Its stock price has rallied remarkably from the lows it experienced at some point in 2013, and is now on an upward movement.

The fact that the stock price is moving upwards, is one indication which anyone can use to deduce that this company is on the path to recovery. But is this fact adequate to convince investors as to whether they should come back or not? When the stock price was falling and there appeared to be no end to this crisis, many investors bolted. Investors have to look at various factors as well before making up their minds on whether this product is one they can now trade with comfortably like they did previous to the lean times the company has endured in 2013.

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Image shows the remarkable performance of JCP in most markets.

The image is courtesy of www.seekingalpha.com

Should Investors Give Up On JCP?

If one was to take an objective look at how JCP has performed in the market this year, there is no doubt they would be convinced that this is not worth their time. Investors have to wear an objective heart at all times and not be pulled down by emotions, regardless of how much time they might have traded with the company in question. There has been strong indication that the company is not on a strong turnaround like it was once reported. The general consensus appears to indicate that the company’s desire to turn its fortunes around is nothing more than talk.

I would advise investors to take a hard look at the facts which are presented before them. If they feel that the JCP’s poor performance in 2013 is nothing more than a blip on the radar, they can proceed to increase their shares with this company. However, if investors feel that the poor trend is likely to go on for quite some time, then it would be sensible for them to sell and get out. It is important to remind investors that none other than Citigroup downgraded JCP in 2013. JCP still has the cash, but for how long will investors be convinced to trade on nothing more than hope?

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