joining us senior consumer analyst liz dunn. any way to make jcpenney a buy case?ink the news today is obviously decidedly negative. when a board member sells stock, it's just not a good sign. they theoretically have more information than we do. i think the company has a tough go for the next several months. they haven't turned positive comps, will have to tap revolver. they have plenty of liquidity. perhaps six months from now, the story could be interesting. at this point it looks like they have more difficult times ahead. >> i will look at, say, your earnings estimates. i know you brought some down. you still have them as earnings estimates in a few years. they are losing money right now. at least,ly, you do see some turnaround in terms of profitability for the company? >> you have to assume something if you believe there's any value here at all. our price target is based on five-year earnings outlook of $2.50 putting a multiple on that and discounting it back. i don't think we're being overly aggressive fwu i don't think you need to look at the stock until they

liz dunn has a neutral rating.. >> we make fun of the notion of putting the pants on and bending over, but this is a key point. it's like testing a car by turning it on but not driving it. or testing food by looking at it instead of tasting it. it seems putting yoga pants to work is a very important aspect of the quality control process. are you satisfied that they have a handle on the situation? >> well, i don't think they necessarily do have a handle on the situation in some regards. they don't know why it happened. they don't know whether it was input into the product or the manufacturing process and they can't really say when they'll have product back in stores that meets their specification. i do think they've made several important fixes going guard. they have several people that they've added on the ground in asia ya. they're all trying it on and bending over. i don't know. >> well, let's hope after that. but, we have had the conference call already. are you satisfied that they are actually looking at that s

we have an analyst on the ground liz dunn has a neutral rating on the stock.from 15 to 19 earlier this month. good morning. how are you? >> hi. how are you? >> good. we had a discussion about when was the last time a kind of brand truly rescued a retailer on a large scale? i'm wondering if this will be it. >> i don't know if it's just this one brand, but this is certainly an exciting brand. the product looks great. the prices are really affordable. i don't think it's just about this one brand. this is the first really transformational brand that they've added in the readvantage of the retailer so far. >> your overall view then, it doesn't sound quite as pot. why not? >> well, i think it's going to take some time. there's going to be a lot of disruption in the third quarter. there's no mds upstairs. it's all tented off. you have to wait for the home transformation. you only have a small portion of the store transformed so far. not enough to move the numbers into positive territory in terms of the bottom line impact. >> right. johnson said it will be positive th