Tuesday Morning Corp. (TUES) Message Board
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Adding at $3.91
Tough to find profitable companies with solid balance sheets and a discount to tangible book with stocks near multi-year highs. Nearly impossible, in fact.
TUES, here, is very compelling value vis a vis what your investment $1 buys you vs. nearly anything else given those criteria.-
I disagree. The chance of a 10% pop are slim except in the case of news. Earnings will be out Monday so that is the the only realistic chance for a rally for the next couple months.
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A move back to $3.50 would downright delight me. Getting a 15K share base here is worth the risk (likelihood?) that we see another 10% downside, as I still see the potential upside as so much greater, and don't want to get too cute about picking up an initial position. I think we all agree this could pop 10% from here at any given time, with no notice.
Regardless, if it does drop to $3.50, I'll at least double down, and then more from there. -
Good posts all around, and I agree with the value argument, but I think the timing may be off. A move below $4 has a good chance of carrying to lower prices....possibly back to support at $3.50-3.65.
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IMO for a given set of facts, the size of one's position should decrease as the share price increases, and vice versa. One possibility would be to maintain a position size whose dollar value varies inversely with the share price.
Example:
When the price is $4.00, hold 100 shares (value = $400.00).
If the price is $5.00, hold 64 shares (value = $320.00).
If the price is $2.50, hold 256 shares (value = $640.00). -
I have been purchasing from 5 down to current level. I'll admit I'm tapped out at this point. Used my gains from Dean Foods to throw into TUES. Same scenario. Amazing how some large funds do not want a stock no matter how low it goes after a poor quarterly. My guess is, like DF, this one will show a 20% gain in short order.
Still am not thrilled about current mamagement, especially merchandising and overall store display, but I do like that the balance sheet is in good order. -
Did you hit it in time? (the ask at $3.91, that is)
- 1 Reply to pjv2xyw9dww4b6
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I did, though I only added 2600. If it continues to churn around down here I'll likely add more. I'm pretty surprised it hasn't bounced back more after that first day drubbing, but I'll take every chance to scale in here I can get.
Rare to find such clean cut, easily discernible value these days.
ECGI, with $2.05 per share or so in cash and stock and almost no debt, and profitable now for two straight quarters, is the other one I know of; it's at $1.03, a full 50% discount to net cash and investments, of all things, not even book.
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