Source: courtesy J.C. Penney Co. Inc.
The sole underwriter of the offering is Goldman Sachs & Co., which has a 30-day option to purchase an additional 12.6 million shares. That is the same company that downgraded the stock to Underperform earlier this week.
Apparently J.C. Penney executives think investors believe all that happy talk the company put out yesterday about showing improved sales in the third and fourth quarters of the fiscal year. The company also said it did not need any more cash this year. Maybe the company will invest the cash in an index fund to pump up its profits for the next couple of quarters.
All those encouraging words from J.C. Penney management yesterday pulled the shares up about 13% at one point during the day, offsetting most of the 15% drop from the day before. Shares have dropped more than 22% in the past five days and will lose even more today.
In premarket trading Friday morning, shares are down 7.4%, at $9.65 in a 52-week range of $9.52 to $27.00.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
