J.C. Penney Surges Despite Equity Concerns (Update 1)

This story has been updated to reflected J.C. Penney's share price fluctuations.

NEW YORK (TheStreet) - J.C. Penney (JCP) shares were spiking Thursday despite reports that the troubled retailer was looking for an equity infusion, possibly as high as $1 billion, as the company finally spoke out.

After a morning of share price fluctuation, J.C. Penney's stock was surging 7.5% to $10.88 at last check, along with broader markets gains.

J.C. Penney issued a statement shortly before the market opened meant to assuage investors' fears, saying that it is "pleased with its progress thus far in the company's turnaround efforts and the traction its initiatives are starting to achieve," by seeing "greater predictability in its performance across many areas," it said.

The Plano, Texas-based retailer also said it is "encouraged" by improvements in "purchase conversion both in store and on jcp.com, primarily due to being back in stock in key items and sizes the customer expects to find at J.C. Penney. Overall sales on jcp.com continue to trend double digits ahead of last year."

The company still anticipates "positive comparable store sales trends coming out of the third quarter and throughout the fourth quarter of 2013."

However, there was no mention of liquidity or capital raising activities in the statement, despite a Reuters report saying the troubled department store is to raise anywhere from $750 million to $1 billion in new equity, which cited three people close to the matter.

J.C. Penney's stock plunged to a 13-year low on Wednesday after Goldman Sachs credit analysts issued a report initiating an "underperform" rating on the company's debt. The analysts said they had concerns about the company's liquidity.

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