Diamonds and Dogs
12/27/12J.C. Penney Company Inc. (JCP)
J.C. Penney is erasing its gains today, down 5.93% at $19.52. The retailer saw a 4% gain yesterday, however it has given that all back and then some today. An Oppenheimer analyst was bullish on J.C. Penney early this week partially adding to the recent 4% gain; however the recent weakness in retail sales has scared off investors. Another factor scaring off investors is the company is down around 40% this year, and is not expected to turn a profit until 2014. J.C. Penney is just holding up above its 52-week low of $15.69.
Deckers Outdoor Corp. (DECK)
Deckers Outdoor had its best day in three weeks today, up 9.26% at $38.11. The outdoor footwear company saw its shares climb on heavy short-covering. A research report showed that UGG brand shoes were one of the most searched products during the holiday season, even beating iPads and iPhones in searches. Deckers is owner of UGG brands, and recently has been beat up based on expectations that UGG's were going out of style. Analysts expected sales growth to be only 4% for 2012, down significantly from 2011 growth estimates of 38%. The low estimates lead to large short positions in the company. The news of UGG being highly sought after has led many short positions to be covered today. The company is still well off of its 52-week high of $92.27.