Diamonds and Dogs
10/21/13J.C. Penney Company Inc. (JCP)
J.C. Penney is continuing its downward spiral today, down 8.29% at $6.41. The clothing retailer saw its shares fall after Imperial Capital analyst Mary Ross-Gilbert slashed her price target on J.C. Penney shares to just $1, down from a previous target of $5, amid growing concern over whether the troubled retailer is headed toward bankruptcy. J.C. Penney has staunchly denied rumors about credit problems and bankruptcy, which have plagued the retailer for some time, saying it will end the year with $2 billion of easily accessible cash. The downgrade led investors to flee the stock, causing shares to hit a new 52-week low of $6.27 intraday.
Crosstex Energy Inc. (XTXI)
Crosstex Energy is skyrocketing today, up 67.82% at $34.57. The natural gas limited partnership saw its shares explode after news that Devon Energy would pour $4.8 billion of Midstream assets into Crosstex and create a new publicly traded MLP. For a controlling interest of 53% in the new company, Devon will contribute the $4.8 billion worth of midstream assets, as well as its equity interest in a newly formed subsidiary Devon Holdings and $100 million in cash. The deal helped shares of Crosstex reach a new 52-week high of $34.70 intraday.