J.C. Penney has now joined the likes of recent Recallapalooza 2007 headliners including ConAgra (CAG), Starbucks (SBUX), and Johnson & Johnson (JNJ). The company announced yesterday that it would recall more than 90,000 children's products due to dangerous levels of lead.
The toys soccer moms will be throwing away this time are Winnie the Pooh play sets and decorative ornaments (made in China, of course), and art kits made in Taiwan and Vietnam.
After surpassing the 76 level in mid-July, JCP stocks dropped significantly and have yet to recover. Shares have been hitting support at the 62.50 level and resistance at the 68.50 level since August. After posting weak September sales, cutting their third-quarter earnings outlook, and announcing the aforementioned recall, the retailer is currently trading just above its support level at $62.52, down 1.19%.