NEW YORK (TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- The issue facing J.C.Penney and all retailers, and
- The reason why biotech ETFs are breaking out..
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There's No Reason for Penney to Exist
Posted at 9:45 a.m. EST on Friday, Aug. 15, 2014
What really happened at J.C. Penney (JCP) ? It went back to being a company that will stay in business for some time and do OK. In retail that, frankly, is monumental.
I have never seen a retailer come back from down-30% comps. It is a testament to two things: one, how unbelievably horrible previous management was and two, the board caught it soon enough that it was able to save the day.
Now here's the issue facing Penney and all retailers for that matter: relevance, as in, raison d'etre relevance.
If you step back and look at the landscape you have to ask yourself that, other than for the 110,000 people who work at Penney, why do we need it? In fact, the chief reason we, in this country, need Penney is kind of like why we need a government works program. We want people put in productive roles so they can lead good lives and put dinner on the table.