‘No Compelling Reason’ to Buy JCP: Adami
Online Producer
News that Deutsche Bank is offering a block of 10 million shares of JCPenney doesn't make it a stock investors should consider, StockMonster's Guy Adami said Monday.
"Maybe, maybe if you want to trade it, see where it's priced," he said. "See how it trades off the secondary, and maybe that'll give you some sort of floor but, again, no compelling reason to be in JCP."
On "Fast Money," Adami noted that JCPenney's stock price was declining as Herbalife was "drifting higher."
OptionMonster's Pete Najarian didn't appear to be a buyer.
"Unfortunately, this has been a broken story for a long time," he said. "They've tried just about everything to get this thing moving, and as you lose those customers, what people forget is how difficult it is to get them back, how hard is it to retrieve those customers who have left, who've gone to some of your competition. The competition wants to hold on to them.
"That's going to be a battle," he added.
Karen Finerman of Metropolitan Capital Advisors said that the offer of shares, owned by Vornado Realty Trust, was
"It's not a ringing endorsement of the strategy at JCP," she said.
Trader disclosure: On March 4, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Pete Najarian is long AAPL; Pete Najarian is long JPM CALLS; Pete Najarian is long YHOO; Pete Najarian is long RIMM; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long HPQ; Pete Najarian is long GNW; Pete Najarian is long INTC CALLS; Pete Najarian is long WHR CALLS; Pete Najarian is long AMZN CALLS; Pete Najarian is long CHK CALLS; Pete Najarian is long PFE CALLS; Pete Najarian is long UNP CALLS; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is short PAY; Karen Finerman is long M; Karen Finerman is short SPY.
