JC Penney on wild ride as company feels financial pinch

It has been a wild couple of weeks for investors in J.C. Penney (NYSE:JCP) the iconic retailer that now finds itself on the financial ropes.

Founded by James Cash Penney in Kemmerer, Wyoming, on April 14, 1902, the company grew over the years to currently operating 1100 stores in all fifty states.  Sam Walton, of Wal-Mart (NYSE:WMT) fame, once worked for the company before setting out on its own.

But that was then and this is now, and J.C. Penney (NYSE:JCP) finds itself in a struggle for survival as its stock has plunged from the $19/share region in June to the $10/share neighborhood this week, marking a 13 year low for investors.  The week has seen volatile swings in the share price as investors try to gauge the chances of the company’s survival.

The company has been making news for sometime as hedge fund magnate, Bill Ackman, dumped his holdings in J.C. Penney for roughly $13/share.

Ackman took a several hundred million dollar loss but his hedge fund looks smart today as the company’s stock continues to fall.  Ackman’s buyers included other high profile names including Kyle Bass and George Soros, along with several other well known hedge funds.

The company is looking for $1 billion in fresh capital while juggling a heavy debt load and Citi issued a report that the “floor” price for the stock could be $1.

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