Tomahawk, WI 10/10/2013 (BasicsMedia) – J.C. Penney Company, Inc. (NYSE:JCP) is one company which would be happy to see 2013 draw to an end and start off on a new slate. This is a company which has endured a torrid time in many ways. It has lost the confidence of buyers who used to frequent its stores, as well as investors. It was contemplating a second public offering to raise close to $1 billion and give a much-needed boost to its finances. Late last week, the company announced that it was planning to embark on price cuts in the hope that this will help attract new shoppers to its stores. What about investors?

 JCP On a Two-Pronged Approach to Win Investors and Customers Back

 JCP is not wrong to embark on a two-pronged strategy to win back both investors and customers. These are two groups of people it needs and cannot do without as it seeks to turn around its fortunes from losses to profitability. This week, it has been reported that the company’s shares have been gaining ground. Perhaps this is due to the company’s announcement that its sales picked up in September compared to the earlier situation where there had been nothing worth reporting. Can this improved performance be sustained for the long term or will it end soon?

 Predicting JCP Performance is Not Easy

 JCP is one stock which is quite difficult to predict. The company is not idle and has been actively trying to reverse the dire situation through a number of measures. None of these measures have borne fruit thus far, but this is not to say that JCP has done the wrong thing. Some of the ideas, such as those I mentioned above, are good enough to reverse the situation. Why haven’t these steps borne much fruit? It is quite difficult trying to pinpoint a single reason as the one responsible for JCP’s failures. I think JCP ever appreciated the extent of loss of investors.

 JCP probably failed to appreciate how much of the customer confidence it had lost in the past. But now that it has stated that it saw a marginal increase in the number of sales, as more shoppers bought items from JCP, the dark cloud and gloom which had hovered over JCP has now cleared off. JCP has announced that it expects to end the year with not less than $2 billion as free cash flow. Normally, this would not be such massive news for any other stock, But it has to be taken into context bearing in mind that it is JCP we are talking about here. It’s a lot of money.

JCP Successfully Raises $785 Million from Public Offering

 The other reason which saw JCP shares pick up this week, has to do with the fact that the company managed to raise some $785 million through sale of 84 million shares to the public. JCP had said that it expected to raise $1 billion through this second public offering. It may have failed to achieve its goal, but this has not taken away from the fact that it succeeded in presenting itself as a stock which was still attractive enough. This shows that JCP should not quit just yet on any of the steps it has been involved in since they are already working and producing results.

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