Mark Hake Of Capital Management Sees Bright Future For JC Penney
Hake thinks that buying JC Penney is the best way to make money in the retail sector right now. If it continues to pull sales in, like it seems to be doing from Macy's and other places, the stock is going to have a huge potential.
Mark Hake said that this is an operating leverage story and just a slight increase in sales would massively increase both margins and cash flow.
The typical retail stock is trading for 12 times free cash flow and Hake estimates that JC Penney's free cash flows at $200 to $300 million, within a year or so. That is at least $11.80 stock or maybe even much higher, thinks Hake. He added that in the most bullish scenario, the stock should be worth $18.
JC Penney Company gained 4.17 percent in the regular trading and it added additional 3.59 percent in the after hours, trading at $10.10.
Latest Ratings for JCP
|Dec 2014||Goldman Sachs||Downgrades||Neutral||Sell|
|Nov 2014||Morgan Stanley||Reiterates||Underweight|
|Nov 2014||JP Morgan||Maintains||Neutral|
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