Attention, those of you who own J.C. Penney Company, Inc. (JCP): JCP has entered bankruptcy, and has changed its symbol to JCPNQ. This will likely leave the stock price with little or no value in the future. At this time we recommend selling your shares on Trade Day and recognizing the loss in the Snider Investment Method®.
We recommend these steps to close the JCPNQ position:
• Sell all your JCPNQ shares. When placing the sale order use a limit order form rather than the normal market order. We recommend setting the limit to the current BID price.
• Record the information about the sale on your Individual Stock Purchase Record.
• Complete the “Profit from Closed Position” portion of the Individual Stock Purchase Record. In this case ‘Profit’ will be negative.
• Record the loss on the Monthly Stake Worksheet.
• Remove JCPNQ from your Allocated Cash Worksheet.
Lattco PRO clients: The calculations and adjustments will automatically be done the moment you sell your shares of JCPNQ and update activity.
AutoPilot clients: The calculations and adjustments will automatically be done the moment you sell your shares of JCPNQ and update activity. At this time, the sell trade ticket is not built into AutoPilot. You will need to log in to Ally Invest in order to sell your remaining shares. When placing the sale order use a limit order form rather than the normal market order. We recommend setting the limit to the current BID price.
Bankruptcy is the biggest risk of the Snider Method. Although, we attempt to avoid financially unstable companies through our screening process, the screens are not foolproof. In times of economic uncertainty and recessions, bankruptcy will become more common. Unfortunately, the COVID-19 situation will create irreparable damage for many companies forcing them to restructure their entire businesses. We understand your concern and frustration about this situation.
If you have any questions, please don’t hesitate to contact us at support@snideradvisors.com or 1-888-6-SNIDER. We’ll be happy to walk you through the process.
