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The Associated Press reports that JC Penney is looking to raise $810.6 million via a stock offering, that would sell "84 million shares priced at $9.65 per share. That is a 7.3 percent discount to Thursday's closing price of $10.42 per share."

The announcement comes as its senior vice president and controller, Mark R. Sweeney, left the company. he is being replaced on an interim basis by Dennis P. Miller, senior vice president of finance.

JC Penney continues to try to recover from an unsuccessful turnaround effort begun when CEO Myron Ullman was replaced by Ron Johnson, formerly of the Apple Stores, who was brought in to reinvent the department store chain and move it away from its discounts-and-promotions approach to marketing. When that didn't work out - sales, traffic and profits plummeted - Johnson was fired and Ullman was rehired.
KC's View:
There are probably all sorts of reasons to buy JC Penney stock, having to do with going long or going short or hedging this bet or whatever.

But the one thing that would certainly give me pause is that nothing has happened at JC Penney to convince me that leadership there has anything like a long term plan for making the company relevant. Investors can go long or go short, but if they go deep, they'll put their money elsewhere.