Macy’s earnings call: spectacular. JCP: struggling but is still a premier company. Yielding over a 3.5% dividend, being at 2008 lows, JCP is worth something. As long as your stop-loss is 3.5% below. Yes, you get the dividend cushion.
Saabira Chaudhuri and Karen Talley wrote:
“Macy’s Inc.’s (M) fiscal second-quarter profit surged 16%, with the department store seeing revenue, and particularly online sales, rise as its localized product offerings and raft of exclusive brands resonated with customers.
The Macy’s earnings report stated the retailer raised its full-year earnings guidance by a nickel to $3.30 to $3.35 a share. The second-quarter results, coming on top of solid performances in the prior two second quarters, indicate “that our business continues to have forward momentum, even with challenges that include a soft economy, lower spending by international tourists,” Chief Executive Terry Lundgren said. “We are entering the fall season with optimism about our ability to grow sales and capture market share, especially in the holiday season.” From Macy’s earnings report, it seems to be picking up business from struggling J.C. Penney Co. (JCP) and rival Kohl’s Corp. (KSS) has also gone through a rough patch from a merchandising perspective.
JCP Chart Below:
If JCP can cross above the 20 day moving average (green line), then the next stop is $28. At 2008 lows and yields over a 3.5% dividend. So, Stop loss=3.5%
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