Tuesday Story

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TUES -- USA Stock  

USD 1.06  0.15  16.48%

Even with relatively fragile fundamental indicators, Tuesday Morning reported solid returns over the last few months and may actually be approaching a breakup point. We currently estimate Tuesday Morning as undervalued. The real value is approaching 0.54 per share.
Published over a month ago
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Does Tuesday Morning (NMS:TUES) have invariable fundamental indicators based on the latest spike?
We provide advice to complement the current expert consensus on Tuesday Morning. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. The company dividends can provide a clue to the current value of the stock. This firm is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Tuesday Morning income statement, its balance sheet, and the statement of cash flows. Potential Tuesday Morning investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Tuesday Morning investors may use each financial statement separately, they are all related. The changes in Tuesday Morning's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Tuesday Morning's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Tuesday Morning fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Tuesday Morning performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Tuesday Morning shares is the value that is considered the true value of the share. If the intrinsic value Tuesday is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Tuesday Morning. Please read more on our fundamental analysis page.

Watch out for price decline

Please consider monitoring Tuesday Morning on a daily bases if you are holding a position in it. Tuesday Morning is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Tuesday Morning stock to be traded above the $1 level to remain listed. If Tuesday Morning stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Tuesday Morning's Liquidity

Tuesday Morning financial leverage refers to using borrowed capital as a funding source to finance Tuesday Morning Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tuesday Morning financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Tuesday Morning's total debt and its cash.

How Tuesday utilizes its cash?

To perform a cash flow analysis of Tuesday Morning, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Tuesday Morning is receiving and how much cash it distributes out in a given period. The Tuesday Morning cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Tuesday Morning Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Tuesday Morning reported last year Net Cash Flow from Operations of 22.5 Million

Tuesday Morning Gross Profit

Tuesday Morning Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Tuesday Morning previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Tuesday Morning Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Is Tuesday Morning valued sensibly by the market?

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Tuesday Morning is not uncomon. Institutional investors typically avoid acquiring a high percentage of Tuesday Morning stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Tuesday is distributed among investors.

Ownership Allocation

Tuesday Morning maintains a total of 47.74 Million outstanding shares. Over half of Tuesday Morning Corp outstanding shares are owned by institutional holders. These institutional holders are typically referred to corporate investors that take positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Tuesday Morning Corp. Please watch out for any change in the institutional holdings of Tuesday Morning as this could mean something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Retail Investors
20.37%
Insiders
23.47%
Institutions
56.16%
Retail Investors20.37
Insiders23.47
Institutions56.16
 2015 2016 2019 2020 (projected)
Interest Expense1.07 M2.3 M2.64 M4.1 M
Gross Profit341.8 M342.51 M308.26 M292.03 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Tuesday Morning has an asset utilization ratio of 276.27 percent. This connotes that the company is making $2.76 for each dollar of assets. An increasing asset utilization means that Tuesday Morning Corp is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
310 M
Current Assets310.02 Million79.47
Assets Non Current76.68 Million19.66
Tax Assets3.42 Million0.88

Will Tuesday Morning latest spike continue?

Semi variance is down to 229.25. It may connote a possible volatility fall. Tuesday Morning Corp is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Tuesday Morning implied risk. Tuesday Morning Corp is a potential penny stock. Although Tuesday Morning may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Tuesday Morning Corp. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Conclusion on Tuesday Morning

While few other entities under the discount stores industry are still a bit expensive, Tuesday Morning may offer a potential longer-term growth to retail investors. The inconsistency in the assessment between current Tuesday valuation and our trade advice on Tuesday Morning is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Tuesday Morning.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Tuesday Morning Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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