JC Penney (JCP) NewsBite - JCP Rises on Polo Ralph Lauren Profit

Posted on Wednesday, May 28, 2008 10:11 AM
JC Penney Co Inc (JCP) opened at $41.16. So far today the stock has hit a low of $41.10 and a high of $41.93. JCP is now trading at $41.17, up 0.67 (1.65%). After hitting a one-year high of $82.49 in June, the stock hit a one-year low of $33.27 in January. Shares of JCP are rising this morning after Polo Ralph Lauren (RL) announced that its fourth-quarter profit jumped 41 percent to $1 a share, well above analysts' estimates of 65 cents per share. RL was boosted during the quarter by the launch of the American Living line at JCP, which has helped JCP's stock this morning. Technical indicators for JCP are bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged play on this stock, consider an August bull-put credit spread below the $30 range. JCP hasn’t been below $33 at all in the past year and has shown support around $38 recently. This trade could be risky if the company's earnings (due out in mid August) disappoint, but even if that happens, this position could be protected by the support the stock might find around $28, where it bottomed out in March and April. [LHF- Seven Summits Strategic Investments NewsBite]
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