Diamonds and Dogs
5/16/12J.C. Penney Company Inc. (JCP)
J.C. Penney is making no "cents" today, down 19.72% at $26.75. Today will mark the company's worst day since Black Monday in 1987. J.C. Penney posted a loss of 25 cents a share which was significantly worse than analysts' expectations of a loss of 8 cents per share. The retailer reported a $163 million loss, more than twice what analysts were expecting. Another reason many people are selling their shares of the company came from an announcement to suspend its quarterly dividend. Michelle Clark, analyst at Morgan Stanley, said that the earnings support her sell rating on the company's shares. J.C. Penney is having a huge sale today; unfortunately it's their stock that is on sale.
General Electric Company (GE)
GE is electric today, up 3.26% at $19.00. The company saw its shares soar after it was announced that the company will be providing a $4.1 million credit facility to Jimmy John's franchisee Hinz JJ. GE also made a $700 million acquisition of mining equipment company, Industrea; the move comes at a time when the mining sector is booming. GE also went on to state that it would take money out of its financial unit GE Capital. GE Capital will pay a dividend of $4.5 billion to its parent company, as well as a quarterly dividend of $475 million in the second quarter. GE Chief Executive, Jeff Immelt said, "This action demonstrates the strength of GE Capital and the significant actions taken to strengthen its liquidity, capital, asset quality and profitability."
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