Two "Must Not Own" stocks — JCP and BBRY. Just don’t do it!
Discussed in this article: J.C. Penney Co. Inc. ( $JCP )
I want to look at a couple of real traps here, these are just like money sucking wenches, JC Penney ( NYSE:JCP ) and BlackBerry ( NASDAQ:BBRY ).
Here’s the thing, everybody’s trying to pick a bottom on JC Penney ( NYSE:JCP ), don’t do it. There are a number of reasons why this stock is down. Have you been in a JC Penney’s ( NYSE:JCP ) lately? I’m still waiting for the hand to be raised. They’re mowing the parking lots because of the grass coming up through the cracks. Apparently their sales are increasing, but you know what? So what?
The stock is trading lower, there’s a key bottom right there. Okay great, the stock rallies up to above $10.00, now it turns out the SEC is probing their finances. This stock is trading lower, if you are holding JC Penney ( NYSE:JCP ) stock right now, and some of you are, I know who you are, I’m like Saint Nick only I’m not quite so fat; I know what you’re doing. You’re holding JC Penney ( NYSE:JCP ) because you read some bullish report or somebody’s going, it’s going to be a tenbagger.
The stocks trading lower, nobody wants to own it; 48 million shares traded hands and it fell over 8-percent. So if you are holding this stock I’m telling you, you’re holding the bag, you’re letting somebody else out of their trade. Short sellers maybe, happy to sell it to you, but this is not a stock that you want to be in. I don’t know how far this is going, I joke about stuff like this, JC Penney ( NYSE:JCP ) its $8.08 above support.
I don’t know how low this is going, but I do know this; with other stocks that are working pretty well, is this really a stock that you want to own? Or is this that stock, and you know I’m talking to you, that you have in your portfolio and every day you look at it and it just eats at you a little bit more, and a little bit more, and it’s bringing you down, you’re getting depressed, but you’re just waiting for the stock to come back up to $10.00, maybe up to $14.00 where you bought it. But I’m telling you, you can do better things with your money than keep it in JC Penney ( NYSE:JCP ).
Another one, BlackBerry ( NASDAQ:BBRY ), I’m pretty sure I covered this the other day from a higher level when I mentioned, maybe it was in a note, one thing you’ll never hear any cellular phone, PDA tech company, whatever you want to call it, one thing you’ll never hear them say is, “Wow that BlackBerry ( NASDAQ:BBRY ), they’ve sure got some advanced technology. Let’s see if we can buy one of their phones and reverse engineer their stuff.” Sorry, it’s not going to happen; the stock is at 5.88, I’m sure somebody’s going to buy this company, but I doubt they’re going to be paying 5.88 a share for it.
Do you remember Palm? Some of you do, most of you don’t; they were the ones with the little stylus things. The bottom line is, that company went in IPO and now its type in that ticker, it just comes up with Colgate-Palmolive ( NYSE:CL ). By the way, not a bad time to be buying Colgate-Palmolive ( NYSE:CL ), do you know why? Because Palm is out of business, you don’t have a Palm Pilot anymore. So with BlackBerry ( NASDAQ:BBRY ) what I’m saying is, it gets a lot of press, and you’ve got everybody trying to pick the bottom in BlackBerry ( NASDAQ:BBRY ). I’m telling you, don’t do that, just stay away from these stocks. These are must not own stocks, BlackBerry ( NASDAQ:BBRY ) and JC Penney ( NYSE:JCP ).