Has Investor Patience in J.C. Penney Run Out?

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Oct. 22 (Bloomberg) –- Bloomberg’s Poonam Goyal discusses the impact of a declining share price on JC Penney. She speaks with Erik Schatzker and Stephanie Ruhleon Bloomberg Television's "Market Makers." (Source: Bloomberg)

Deteriorating.

Otherwise, people wouldn't be stampeding out of the stock.

What is the future look like to you?

The future is uncertain, as we all know.

The stock has plummeted over the past three months.

We have to look at is the cash balance.

If you are a believer in the story, they have another year to prove turnaround.

The turnaround is gaining traction.

Same-store sales were down four percent in september.

They are expected to be flat at the end of the fourth quarter.

What kind of impact does the declining share price have on a company like jcpenney?

We were talking about what it meant for bear stearns or lehman brothers.

But i'm figuring there has got to be a difference between wall street and main street.

There is a big difference because the underlying fundamentals of the company on a deteriorating right now.

-- are not deteriorating right now.

Low levels.

As long as they have cash, and they will have $2 billion, they have a year to prove themselves.

Has investor patience run out?

Stocks have gone from $14 to six dollars.

Do they need a big name to come in and say "i'm going to buy big thomas" warren buffett style?

Probably could it would provide some support.

But can it save them?

If the turnaround continues, yes.

That is a big if.

Put it in the context of its competitors get how it sound is the turnaround strategy?

The turnaround is working.

65% of the businesses doing better in september, so it is happening.

It is slow, it is going to need time.

You lost $4 billion in sales and they are not going to come back overnight.

Talk about management.

We have seen how things have played out.

So much is getting blamed on bill ackman, so much blamed on ron johnson.

Mike ullman seems to be in the seat for a much longer term at this point.

What are people saying about the management structure?

The management structure is sound for the moment only because they are bringing back what needed to be brought back.

Ron johnson completely change the company, completely change the customer for the company, and that needs to be pulled back.

They need to bring back the core offerings at lower price points.

They need to drive traffic.

Who is taking advantage right now of jcpenney's the stress -- distress?

A lot of people.

Kohl's, target, walmart, all the value guys, you name it.

As long as you cater to that middle income consumer -- how nasty is it?

Are they going right at jcpenney or dancing around the edges?

They are in the same marketplace.

They are in the same market, erik, and if they sell a better product, do people really have store loyalty?

People only have loyalties to the jcpenney private brands.

Are they any good?

It is doing well.

Erik loves --

This text has been automatically generated. It may not be 100% accurate.

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