Time’s Almost Up For $TUP

Many businesses were failing ahead of the pandemic, but the COVID-19 financial market frenzy gave them a second life. As rates normalized, however, investors refocused on their poor business fundamentals and sent shares lower again. 🕵️

That’s happened with Bed Bath & Beyond, AMC, and others, including…Tupperware Brands.

Shares of the home products company fell nearly 99% from mid-’17 through March ’20. They then rallied about 3,300% through January ’21. And they’ve fallen 97% back to their all-time lows since.

Zooming into today’s action, the stock fell 50% after the company issued a regulatory filing late Friday saying there’s “substantial doubt about the company’s ability to continue as a going concern.” Of course, things generally aren’t great when a company releases news late on a Friday. However, this filing also alerted investors because it was done on a day when the market was closed. 📝

The company said it will not have enough cash to fund its operations if it cannot secure additional financing. While management is exploring cost-cutting measures, its asset-light business model leaves it with few opportunities to raise cash quickly. The New York Stock Exchange also warned the company that it remains in danger of being delisted for not filing an annual report. ⚠️

Last November, the company issued another “going concern” warning and has failed to turn things around since then. The seventy-seven-year-old company used to thrive on its innovative kitchen gadgets but has lost its touch and is struggling to attract the younger consumer demographic. Despite a new partnership with Target, the company’s sales remain dismal.

Speaking of struggling businesses, Bed Bath & Beyond issued important information ahead of its Special Meeting of Shareholders on May 9. Shares were down over 4%. 🔻

Lattes Fuel Luckin Coffee’s Jump

Chinese coffee company and coffeehouse chain Luckin Coffee is back in the news after flying under the radar for the last two years. But don’t worry, it’s not for a bad reason this time. 👍

For those unfamiliar with the company, it was best known for coming public on the Nasdaq stock exchange in May 2019 and being rocked by an accounting scandal shortly after. In early 2020, investigative investment firm MuddyWatersResearch published a report that indicated the company had heavily inflated its sales numbers. 🕵️‍♂️

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Sell The Rumor & The News

Unlike the excitement over the pizza at Casey’s General Store, Apple’s annual iPhone launch event was an absolute snoozefest. 😴

Investors had been looking for exciting changes to the product to help justify higher-priced phones or at least entice customers to upgrade; they were left disappointed. That’s because the iPhone 15 price was not raised and will again start at $799 for the base model and $999 for the pro model. The only model to see a change was the Pro Max, which will start $100 higher at $1,199.

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Europe’s New “Largest Company”

There’s a new king of the European content, with the title changing hands for the first time years. 👑

We last talked about LVMH in June, when it became the first European company to pass a $500 billion valuation. Since then, it’s fallen on fears of a slower-than-anticipated recovery in China, allowing a competitor to catch up. 

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Investors Spit Up Chewy Shares

Shares of online pet retailer Chewy are working on their tenth-straight down week, with shares falling to fresh all-time lows today. 📉

Although the company has been expanding into higher-margin businesses like medications, insurance, and advertising, investors are worried about declining margins and activity in its core business. And in the current environment, investors are not looking to buy the dip in growth stocks that are no longer growing (at an “acceptable” rate).

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