Tupperware Brands Corp (NYSE:TUP) stock is having its best day in months. The company known for producing kitchen storage containers has been struggling lately. The meme stock momentum that pushed it to noteworthy highs in July 2023 has since run out. But TUP stock may have been granted the lifeline it needs to continue trading on the New York Stock Exchange.
In June 2023, Tupperware received a non-compliance notice from the NYSE, which cited its inability to trade above $1 per share for 30 consecutive days. The company filed for an extension to regain compliance, and this month, they received it. In an 8-K filing dated Oct. 3, Tupperware reported that it had been granted the requested extension.
What’s Happening With TUP Stock
One week after the company confirmed the extension, TUP stock is performing well. As of this writing, it is up more than 25% for the day, though this week has brought some volatility. The former meme stock has struggled this month, trending downward as interest from retail investors declined. But this recent extension proves that TUP isn’t dead yet, no matter how much it has fallen. Per the filing:
“On October 3, 2023 the Company received approval of its Extension Request from the NYSE’s Listings Operations Committee, subject to reassessment on an ongoing basis. In connection with the approval of the Extension Request, NYSE has stated that it is prepared to continue the listing of the Company at this time and will closely monitor the Company’s progress of the Delayed Filings with the milestones and timing outlined in the Extension Request. Failure to achieve these interim milestones could result in accelerated trading suspension prior to the end of six month cure period on March 31, 2024.”
As it stands, Tupperware’s problems have been effectively paused. This gives it an additional six months to regain compliance and reassure investors that it has room to run. In August 2023, the company did take a step toward this when it restructured its debt. But given the way TUP stock has performed since the short squeeze ended, it’s hard to be too optimistic about its chances at a comeback.
At its core, Tupperware still looks like an unstable meme stock. On top of that, it’s not even an exciting enough company for investors to want to follow it. This compliance extension will likely serve to delay the inevitable.
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 risk.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
