JC Penney (JCP) - A Follow-Up On The Regression Analysis

JC Penney (JCP) article at Seeking Alpha from 8 weeks ago. I don't generally try to post old stuff but I wanted to demonstrate the power of linear regression models to predict the future value of stock prices. While it certainly doesn't always work and there are many factors to consider, it has worked in the case of JC Penney. Not only has it worked but during the last 8 weeks the actual closing average value for the stock was $8.80. This is only three pennies off from the predicted value per the simple linear regression model that I put together back in May and published May 21st. Here was the chart that was presented in the article:

If you go to the article you can download the analysis in excel and update it per new analyst recommendations. Enjoy!