Value Extinction for JCPenney’s (JCP) Bonds in 2016? Credit Investors Switching to The Edge*
Dec 21, 2015
MarketWatch, New York and London: Confidence is sinking over the current market volatility with the uncertain stage of the economy cycle. Now a surging number of global investors are turning to new types of deep fundamentally analyzed bond opportunities. Take the US struggling retailer, JCPenney (JCP – get report), which is showing signs of operational improvement in recent quarters. It looks a quality company to pick and buy in the high yield retail sector, concealing a double-digit ROI potential in 2016.
“JCP’s a great portfolio candidate. In the next year, we see bond returns of 14% for JCP Senior Unsecured Notes, and 17% on a bull case scenario. They’re notably attractive compared to those of the peer set including Macy’s, Kohl’s Corp, Nordstrom, and especially Sears Holdings” said Jim Osman, CEO of The Edge.
Albeit straight-talking from Osman, analyst team’s 40 page research note could have further sponsor in their argument as all three major rating agencies are positive on the JCP upturn story and…