J.C. Penney (NYS: JCP) has gone on a little run recently following horrendous earnings. Most of the time when a company reports weak numbers and shares surge it's because the numbers wern't as bad as people were expecting. In J.C. Penney's cas, it's just the opposite -- they were worse. Revenue fell 23%, same-store sales dipped 22%, direct-to-consumer sales fell 33%, and gross margins narrowed.
CEO Ron Johnson was able to pacify the markets with encouraging words about J.C. Penney's strategy. He admitted some fault, but ultimately stuck with what's been a poorly received pricing strategy. Unfortunately, there is a lot more going wrong at this company than going right.
However, Ron Johnson's retail magic is still shimmering elsewhere. Over at Apple, the operations he put in place are still alive and well.
However, with the impending release of the iPhone 5 and Apple TV on the horizon, the stakes have never been higher for the company. If you're looking for a recommendation on how to play Apple, along with continuing updates and guidance on the company whenever news breaks, we've created a brand-new report that details when to buy and sell Apple. To get started, just click here now.
The article 1 Irrational Rally You Shouldn't Chase originally appeared on Fool.com.
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