‘A better opportunity’ in JCP ahead?

J.C. Penney bulls should get a better entry point to buy shares of the foundering retailer, Josh Brown of Fusion Analytics said Tuesday.

"I think the stock has the potential that something from out of left field could take place here. That's why you can't be short it," he said.

"However, that is not the same thing as saying I want to take the 100 percent of my portfolio, I want to find a slice in there to allocate to J.C. Penney. I want to do no such thing."

On CNBC's "Fast Money," Brown said that he saw a new issuance ahead.

"We already know that there's going to be a stock sale. They have no choice. They need to raise money," he said. "I think there'll be a better opportunity if you want to be bullish on J.C. Penney to buy it. That being said, you can't be short this name. One of the big overhangs is now being removed."

OptionMonster's Jon Najarian said that he had covered short positions on the news that investor activist Bill Ackman was liquidating his 39.1 million shares of J.C. Penney.

(Read more: Bill Ackman's Pershing Square sells entire JC Penney stake)

"It just didn't make sense to be short the thing anymore," Najarian said, adding that the stock could climb in value.

"I'm not saying it doubles or triples, but I could easily see it get back to $18, and I wouldn't want to be along for the ride."

Rosecliff Capital's Mike Murphy said that it appeared that the company could run out of cash and cease to exist within the next four to six quarters.

"I think there's opportunity here if they can reverse that," he said. "If something comes out in the quarterly report or with management, or something positive comes out that says, 'Hey, take that off the table. No longer value our company stock on the fact that maybe we're going out of business within a year.' I think the stock's back to $20."

— By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.