Amazon.com, Inc. (AMZN), Zynga Inc (ZNGA): Napoleon Would Short These Two Stocks

The opportunity

Ronald Johnson, now former CEO of J.C. Penney Company, Inc. (NYSE:JCP), was known for his retail work with Apple. Chosen to rejuvenate its aging brand, he launched a new promotional strategy. No longer would there be coupons. Instead, everyday would be a sale day, with the savings already built into the price. Unfortunately, this alienated J.C. Penney Company, Inc. (NYSE:JCP)’s core consumer. The company’s failure to focus upon its core customers resulted in decreasing sales and a falling stock price.

In March, the retailer again began issuing coupons. It’s up to new CEO, Mike Ullman, to make sure J.C. Penney Company, Inc. (NYSE:JCP) continues to focus on its core business and customers. The company has learned the lesson the hard way, and I doubt shareholders will let Ullman forget it anytime soon.

A battle you can win

J.C. Penney’s fall illustrates yet another example for investors to scoop up beaten-down shares on the cheap. Read letters to investors, listen to keynote addresses, do your homework and learn if the CEO is abiding by the two tenants of focus. The CEO’s of today should follow Napoleon’s example. Implement the two tenants of focus and perhaps they will win the battle for the company’s future.

The article Napoleon Would Short These 2 Stocks originally appeared on Fool.com and is written by Marie Palumbo.

This article was written by Joshua Sauer and edited by Chris Marasco. Chris Marasco is Head Editor of ADifferentAngle. Neither has a position in any stocks mentioned.The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com and JPMorgan Chase & Co. and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Marie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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