We keep an eye out for companies that are truly struggling and may be headed for disaster. Stocks on are watch list are typically losing money, filing for bankruptcy or fighting to survive. We urge investors to do their homework when a company reaches this stage. JCPenny looks like a sad version of its former glory.
Like Sears Holdings, JCPenney had the bad luck of being a small retailer in the land of giants. Though the company was a mall staple, the decline of the traditional mall model of retail and competition from Walmart led to poor sales and a need to rebrand. Several rounds of store closures followed, with the remaining stores focusing on clothing and home furnishings.
Rating: Already Turned. Time To Toss It