Penney shares drop to lowest point in over 3 years

Associated Press

NEW YORK (AP) — Investors are growing increasingly worried that J.C. Penney may not be able to stabilize its business soon.

Shares are down 10 percent to $18.60 in late morning trading Monday, earlier striking their lowest point since March 2009.

The department store on Friday posted its third straight quarterly loss and another steep sales drop. The chain, which is based in Plano, Texas, has been struggling since implementing a new pricing plan in February.

Credit Suisse analyst Michael Exstein says he's concerned that J.C. Penney Co.'s "road to recovery will be very difficult" if it doesn't slow its sales decline within six months. He has downgraded the stock to "Underperform" from "Neutral."

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