For those of you who would like to contact me during the day I am also available on line through the AOL Instant Messenger service (It is available through AOL and as a Netscape Plug-In.). My screen name is "ESN Fin". I welcome and encourage you to use this method of communication. I look forward to your use of the AOL Instant Messenger Service. This is a FREE SERVICE. You do not need to be an AOL Subscriber to use this service. A free download of this service is available at www.newaol.com/aim
Position Statement: In our Prime Recommendation
Letter we attempt to identify the recommendation with the highest probability
of moving higher. We recommend that stop orders be placed at the
time of purchase, and once the position has moved profitable we recommend
a stop be placed a minimum of 3/8th above the purchase price and moved
higher as the position moves higher.
Today's Comments: The overall market moved sharply higher
on Friday with follow through buying from Thursday's surprise interest
rate cut. The rally was rather broad based. There was strength
in the majority of the indices I track with the exception of the telecommunications
indices that appears to have seen a drop on a shift away from their defensive
nature. The financial and transportation indices were the top performing
sectors on the day. The market is beginning to enter an area of resistance
from last fall. Further moves higher may more difficult achieve.
I am expecting the market to continue to show strength until a subsequent
event occurs to cause a move lower. This may be a major earnings
problem, political event, or economic event. The Bottom
Line: The market should move higher.
Company: J.C. Penny Co, Inc.
Symbol: Closing Price: $48.875/share.
YH: $78.75 YL: $42.625
EPS: $1.97 P/E: 24.8
Forecasted EPS: $3.82
Dividend: $2.18 Yield:
4.4% Ex Dividend: 10/7/98
Price Target: $51.56 & then $53.94
Downside Stop: $47.375
Options Recommendation: November 45 Calls, Symbol 'JCPKI'
@ $5.25/contract.
Company Description: This company is a major retailer.
Recent News: 10/16 J.C. Penny to buy Louisiana stor
from Dillard's
10/8 Merrill cuts J.C. Penny to Intermediate-Term Neutral
Our Analysis: J.C. Penny is a component of the S&P Retail
Index 'RLX', which I have rated as moving higher from its current
levels. The shares of 'JCP' gapped higher on the open of trading
on Friday. They finished the day higher and closed above a key upside
resistance level. The shares should continue to move higher and test
$51.56/share, the from which they gapped lower in mid September of
this year. If the shares close above that level then they should
continue to move higher and test $53.94/share, the point from which
they gapped lower in early September of this year.
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services to the companies mentioned within this report.
