Don't close the lid just yet.
It wasn't that long ago that people were writing Tupperware's (TUP) -) obituary.
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In April, the Orlando, Florida-based company, which sells containers to preserve food and ingredients and is famous the world over for its Tupperware parties, had engaged several advisers from investment bank Moelis & Co., law firm Kirkland & Ellis and turnaround management firm Alvarez & Marsal.
Not normal: Tupperware's stock +350% in 5-days. pic.twitter.com/dm27QAapUZ
— Brian Sozzi (@BrianSozzi) July 27, 2023
Shares had fallen 92% from the previous year and the company warned that filing for bankruptcy was a possibility as its revenue plummeted.
Tupperware faced additional challenges from paying interest on its debt and estimated that it lacked enough liquidity to continue operating.
'Not Normal,' Journalist Says
The company had also said that it had found additional prior period misstatements in its financial reporting.
And while the stock was tanking, Tupperware was making an appearance in the Amazon (AMZN) -) Prime hit "The Marvelous Mrs. Maisel."
But then a funny thing happened on the way to bankruptcy court.
Tupperware's stock surged a stunning 350% in a five-day period and was up 13% to $3.33 a share on July 28.
In the words of Midge Maisel, “plastic, the modern miracle.”
Trading volume was also well above average for the company and reached more than eight times the stock's 10-day moving average, according to Reuters.
"Not normal," journalist Brian Sozzi tweeted.
"There is some optimism that a turnaround may be in progress and an investor has been found to help the company," Neil Saunders, managing director of retail at the GlobalData consultancy, told the BBC. “However, there is no evidence of this being the case, so any optimism is based on hope rather than certainty.”
And let’s get real for a minute here, people: Tupperware's share price is still down by almost 30% since the start of this year.
'Extremely Bullish' Score
So, it looks like the company founded in 1946 by chemist Earl Tupper may be heading into meme stock territory, like Bed Bath & Beyond, GameStop and AMC Entertainment, which all became feverishly popular with retail investors.
Also like other "meme" shares, Tupperware's stock is highly shorted. About 25% of the company's public float was sold short as of July 14, Reuters said, citing Refinitiv data.
In addition, private equity titan BlackRock (BLK) -) has stepped in as investment partner, according to a July 7 filing with the Securities and Exchange Commission.
Tupperware was also among the most watched tickers on retail-investor-focused Stocktwits.com, with an "extremely bullish" sentiment score.
“This company has been around for almost 80 years and has survived events that wiped out others,” one person wrote, along with a video clip of a roaring Rocky Balboa. “Its not going anywhere but up!”
"TUP just don’t break my heart and separate my marriage please. The wife doesnt know how much I put into this lol," one commentator said.
