Piper Jaffray's Analyst Likes J C Penney Company Inc

Speaking

, Neely Tamminga of Piper Jaffray said that she believes in

plans to reclaim a part of the market share it lost. She thinks that the company is doing what its management has promised. It has set a plan to reclaim $2 billion of market share after it lost $6 billion in the last three years. Tamminga explained that a little bit weaker September sales are the reason for a Tuesday's decline of 10.88 percent, but she is not concerned because every company in the sector is going to report weaker sales. The analyst also likes

gross margins and finds them solid. Guy Adami commented that the risk - reward is attractive. Assuming that the cash flow problems are gone and that it is possible to use the company's price to book ratio as a metric for relative valuation the stock should trade at $12, added Adami. He explained that

currently trades at a price to book of 1 and most of the stocks in the space trade at 3 or 4. With a P/B ratio of 1.5 the stock would trade at $12.