Sealy Corp (NYSE:ZZ)

TSIF (99.96) Submitted: 5/26/2009 2:02:50 PM : Start Price: $2.10 ZZ Score: +7.39

Sealy continues to defy gravity and bounce back. Must be the springs. (err, I mean coils). Mattresses will remain discretionary and the recession will not end magically. Unemployment will lag. Sealy continues with creative financing, including warrants and now selling what appears to be a 52.5% stake to Sterling Partners in exchange for what appears to be a large part of the company at $0.70 per share, including board control. The markets are struggling to figure out what these secondary offerings mean and Sealy remains at $2.10 per share despite the dilution. With Total Stockholder Equity a negative ($164,824) and Net Tangible Assets ($$526,918) I don't see much left for share holders. Maybe they will want new mattresses to put their worthless stock papers in.