J.C. Penney Company, Inc. (NYSE:JCP) was up by more than 3% on Wednesday after the news broke that the retailer has appealed a New York state court ruling, which had ordered J.C. Penney Company, Inc. (NYSE:JCP) to pay Macy’s, Inc. (NYSE:M) monetary damages, as the former’s contract with Martha Stewart Living OmnimediaInc (NYSE:MSO), was viewed in violation to the exclusivity agreement between Macy’s and Marth Stewart. However, despite all the latest development around the retailer, JC Parets, the President of Eagle Bay Capital, is concentrating more on the supply and demand factors, according to Fox Business.
Parets is extremely bullish on the stock, based on the interesting short interest element working in there. He recalled that exactly four months back, the short interest was four days old, but now sees the short ratio up by seven, even as the short interest stands diminished. Parets said: “short interest diminished, but the short ratio is up to seven and we are more bullish with seven months to go.” He adds that since the short ratio is double of what it was four months back, it makes the firm more bullish as they expect the stock to rally up by over 30% in the months to come.
Shrugs Off Criticism
Parets brushed off the various reports raising eyebrows on the way J.C. Penney Company, Inc. (NYSE:JCP) is managing its finances as he said that the criticism around the company is not new as it has already been baked into the pricing of the stock, which could be made out from the short interest present in the stock. Despite those factors, Parets’ stance for the company is firm as he chucks off the negatives aside.
In the meanwhile, Parets outlook about J.C. Penney Company, Inc. (NYSE:JCP) is less dependent on how old the products are offered on the company’s shelves. Parets said that his views about the company is based more on his opinion about the fundamentals and charts, rather than the stories building around the company. He said: “If we break down below that 9-dollar level, all bets are off, at least temporarily.” Parets boldly said that he is not afraid of getting wrong, though he was very much right the last time, when he was bullish about J.C. Penney Company, Inc. (NYSE:JCP).