Stifel’s Taylor LaBarr upgraded the company from Hold to Buy, while establishing a price target of $9.
• The recent decline in Tuesday Morning’s shares appears to be an overreaction, LaBarr said, while adding that the company has good growth prospects over the long term.
Terming the recent decline in Tuesday Morning’s shares as an overreaction, analyst Taylor LaBarr said, “Such valuations are usually reserved for companies with existential threats and emerging doubts of a going concern. But TUES is not going away.” He added that the company has a healthy balance sheet, with no interest-bearing debt.
In the report, Stifel noted that three consecutive comps misses, the loss of a well-liked CEO and a lowering of the estimates had “rattled investor confidence.”
Saying that the markets have cast Tuesday Morning as a “broken turnaround story,” LaBarr wrote, “[W]e don’t think that’s true. Expectations have now been reset and we look to 2Q16 and beyond.”
“We expect comp store sales up mid-single digits in FY16 (in line with guidance) and revenue drivers are highly visible. FY16 is a peak investment year, but in CY17 we are modeling a positive free cash flow yield of 5%,” LaBarr said.
The company’s long-term growth prospects are expected to be driven by store relocations, supply chain improvement, growing brand awareness and improving product quality, the report mentioned.
Will be getting a wells notice eventually.
You must not have paid much attention to all his past failed businesses and BLGOs market value decline of over 98% since he took over.
I wonder if he got his wells notice ?
I think a number of them will be going out related to this pump & dump.
Sitra belongs behind bars. He has proven he cannot live without cheating people.
2 posts | Last Activity: Aug 21, 2015 4:04 PM
Member since: Aug 21, 2015
They continue to do death spiral convertibles, right ?
13 straight years and never made a dime. Its a stretch for anyone with a pea brain to think the next 13 will be any different.
Id wager heavily they will not.
But they could have put feelers out.
Wouldn't be surprised to see them buy a big block Tuesday or wed.
If they don't, its bearish. If they do, the stock will pop $1-1.50 before we can buy at their price.
I should have left my $5.06 buy but hindsight is always 20-20.
Bottom line is it sounds like good EPS is at least 3 years away.
So how do you value TUES ? Book value ? Discounting future earnings ?
Im not going to pretend I know the answer.
I just know that I had a whole lot of red ink in my portfolio the last 2 days. But not nearly as much as if I didn't have so much cash sitting on the sidelines.
Actually we are up during a down market. Wonder if something us up.
No fraud here. BD is in the same boat as shareholders.
I wish we would get more communication though.
No 8k means nothing material was demonstrated. Its just more of the same ole BS that they have been shoveling for 13+ years.
The stock was 88 cents and I was wanting to pretend short 100k shares.
I predicted the stock would go to 10 cents or less.
We are only at .34 so its held up a lot better than I expected. Down only 61% or so.
But, If my pretend short was real, I sure as heck wouldn't cover. I submit the real value of this company is less than zero.
Because they have a negative net worth with no reasonable chance of future profits forever into the future.
You ought to love todays $392.
Its going to have to go lower to tempt me back in for more.
I sold most in the tender and before.
My biglari discount must be larger than yours.