Tuesday Morning Corporation (NASDAQ: TUEM) had been dealt a rough hand and has seen its stock drop from $68 to below $0.68, all in a single year. This morning, however, the market has surprisingly pushed up TUEM stock by 17%.
TUEM Sees Correction After Plunge
Tuesday Morning Corporation (TUEM) has had a rough year, but its decision to voluntarily delist from NASDAQ had only accelerated its downward plunge. With the already bleak future of the company seeming even dimmer, the mass selloff reached a much more severe magnitude than the market previously saw. However, today’s 17% price climb suggests that there is a wider perception among the market that TUEM’s beatdown is sufficient as of yet. This rise acts as a minor correction following its plunge, considering that the stock may not yet be completely worthless, even in the event of a possible bankruptcy. There still may be an opportunity for a climb in the event of a complete business overhaul.
Tuesday Morning’s Future Uncertain
The core reason behind this year’s dismal performance which saw TUEM lose 99% of its price is due to the uncertainty of its future. The management reckons that deregistering as a public reporting company would eliminate a major chunk of its obligations which it presently cannot afford to meet. With constantly falling top and bottom-line figures, increased insurance costs, and short-term capital limitations, this may be the only move for Tuesday Morning, which would enable it to avoid a bankruptcy scenario, and leave the game on its own terms. It is apparent that the company has fallen victim to the tough macroeconomic climate that has picked off small, struggling companies.
Even when facing the worst-case scenario, the market clearly feels that TUEM stock has taken too much of a beating, resulting in an upward correction seen today. Only time will tell if this player still holds a future, beyond immediate challenges.