Bed Bath & Beyond has wrapped up its liquidation sale and GameStop is losing executives, so the meme stock crowd is on the hunt for the next big investment for day traders who source their investments largely from Reddit—and may have found it in the kitchen cabinet.
Shares of Tupperware have rallied in the last several days, with shares gaining more than 300% in the past month and more than doubling in the past five days. (The stock was up another 7% in early trading Monday morning.)
The company hasn’t come close to the highs of the early meme stocks, and it still trading in the $3 range, but that’s a big jump from the 80 cents it was trading at in early July. (Year to date, Tupperware stock is still down more than 20%.)
That dip is largely due to an announcement by the company in April of this year that it faced substantial liquidity problems and “there is substantial doubt about its ability to continue as a going concern.”
The company faced a possible delisting at one point in 2023, failing to file its annual report. It said it hoped to do so by the end of May, but failed to meet that deadline. The company now says it will file the annual report by the end of August and has pushed its most recent quarterly report to late September, but noted that “there can be no assurance that either the Form 10-K or Form 10-Q will be filed by such dates.”
Those worrisome notes led to traders shorting the stock—and that’s often catnip for meme stock traders. Whispers that the company might have found an investor are also sparking optimism.
Sales have been declining at Tupperware for years, as competition in the plastic storage container business has increased dramatically, with competitors offering products at substantially lower prices. In 2020, however, Tupperware reported its first year-over-year sales increase since 2017.
Tupperware says it is working to improve its capital structure and near-term liquidity—and has brought on advisors to help it look for investors or potential partners. It’s also reviewing its real estate portfolio for potential cash injections.