On April 5, This ‘X’ Pattern Changes Everything

It appeared before Ambrx Biopharma climbed 175%... before AMC soared over 1,000%... Now, it’s appearing in multiple stocks on a regular basis. Luke Lango believes he’s cracked the code. On April 5, he’s going to reveal everything – including a free X-pattern pick.

Wed, April 5 at 4:00PM ET

Tuesday Morning (TUEM) Stock Surges Ahead of Bankruptcy

  • Speculators piled into Tuesday Morning (TUEM) overnight.
  • The company will be delisted and go private next month.
  • It’s a bet that there’s online life after retail store death.
TUEM stock - Tuesday Morning (TUEM) Stock Surges Ahead of Bankruptcy

Source: Eric Glenn / Shutterstock.com

Tuesday Morning (NASDAQ:TUEM) stock rose 40% overnight, on top of a 16% gain on Dec. 29, as speculators bet they can profit from its coming delisting.

The company expects its delisting to become final on Jan. 12. It will file papers early next week.

Tuesday Morning is an off-price vendor of home goods and décor based in Dallas, Texas.

Profit From Failure

In its most recent quarterly report, Tuesday Morning said it had nearly 500 stores but that it lost $28 million on sales of $151 million for the quarter ending Oct. 1.

At the time it listed current assets of nearly $148 million. The overnight gains left it with a market capitalization of just $5.5 million. The stock had a reverse split of 1:30 just a month ago.

Tuesday Morning stores are a cross between TJX’s (NYSE:TJX) Home Goods chain and Bed Bath & Beyond (NASDAQ:BBBY). They sell home furnishings, furniture, and accessories for less than department stores. Such retailers have had a tough time when high-end merchants can use online sales and outlet stores to move distressed merchandise. Most Tuesday Morning stores are in upper-income suburban strip malls.

The overnight move only brings Tuesday Morning stock partway to where it was on Dec. 22, when it was trading at $1.85/share. It was expected to open on Dec. 30 at 86 cents/share.

TUEM Stock: What Happens Next?

Speculators believe there’s life after going private. Tuesday Morning won $32 million in financing in September from a group led by Retail Ecommerce Ventures, which also owns the brands Pier One, Linens ‘n Things, Stein Mart, and Modell’s Sporting Goods. Tuesday Morning managers led by CEO Fred Hand also chipped in $3 million at that time.

Getting into Tuesday Morning stock now is a speculation that this isn’t the final chapter for the retailer. Other brands bought by Retail Ecommerce Ventures still do business online, even if their physical stores are gone.

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.

Article printed from InvestorPlace Media, https://investorplace.com/2022/12/tuesday-morning-tuem-stock-surges-ahead-of-bankruptcy/.

©2023 InvestorPlace Media, LLC