A Small-Cap Retailer's Bracing Shakeup
Things are starting to heat up at Tuesday Morning (TUES), a closeout retailer that I've referred to as a "rich man's dollar store." Last Wednesday, the company fired president and CEO Kathleen Mason after three years on the job. Interestingly, Mason's firing happened just after activists Becker Drapkin revealed a 5.02% stake in Tuesday Morning and sent a letter to the board that was very critical of Mason, accusing her of destroying shareholder value.
Indeed, it's been a strange road for this name, which was a $35 stock in 2005. It was downhill from there, all the way to the $0.50 range in early 2009. But it never appeared that Tuesday Morning was in any danger of going under. The company has typically had a very clean balance sheet with little or no debt, and it was in the black or near break-even on an annual basis throughout the dark days of the last recession. After hitting the $0.50 mark, it peaked in the $8.50 range....273 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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