On the day that Sears Holdings (SHLD) officially declared bankruptcy, Bill Friend, VP of Fluent Commerce, came out with a statement saying:
"Sears was raided by hedge fund guys, so they were never going to really recover…J.C. Penney is a different animal in that respect."
The clarity of this statement cannot be emphasized enough. However, the article that highlighted Friend’s comment from Real Money (TheStreet.com) was titled “J.C. Penney and Sears Aren't Cut From the Same Cloth.”
What is the best determination of whether JCP is cut from the same cloth as SHLD? We look at the comparison of the two stocks since the peak of the market in 2007 to the intraday price on October 16, 2018.
With a loss of –99.99% for SHLD and –97.73% for JCP, a reasonable person would get the impression that both SHLD and JCP are cut from the exact same cloth. At least that is what the market price has said so far.