Tuesday Morning Corp (NASDAQ:TUES)

CAPS Rating: 1 out of 5

The Company is a closeout retailer of upscale home furnishings, housewares, gifts and related items in the United States.

Recs

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Player Avatar TSIF (99.96) Submitted: 1/11/2010 10:51:42 AM : Underperform Start Price: $4.12 TUES Score: -52.27

It's Monday morning, not Tuesday, but Tuesday Morning Corp certainly found a flood of enthusiasm for it's stock after it's announcement that it was not only profitable for December, but same store sales and traffic were both up over 5%. Great news! 35% share price increase great?? I don't read it that way. "For fiscal 2010, Tuesday Morning, which sells lamps, rugs and kitchen accessories, expects to earn between 6 cents and 10 cents a share on revenue of $805 million to $815 million". So 6 to 10 cents for 2010. With todays share price boost that would be a P/E of 40 to 66. Debt is minimal for a retailer, accounts payable is high and inventory needs balanced. The Christmas quarter is the highlight for the year, it will be a downhill coast from here. I think Tuesday Morning has shown great improvement over the last two quarters and while trading slightly below book value even at today's spike, it is getting well ahead of itself with Mr. Market's typical tendency to react first and evaluate later.

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