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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
