Tupperware – Hold the Confetti
With its stock soaring by as much as 50% Friday, it’s clear Tupperware investors were having a party...
They obviously were cheering news that the company has reached a deal with its banks to restructure its debt.
But after going over the filing with a friend who used to be a credit analyst, I’d say these investors might want to hold the confetti.
Not that it matters with a stock like this, which trades on everything but fundamentals.
What else would explain the action of the past few weeks, especially on Friday... likely the result of a press release announcing the debt restructuring.
I’m pretty sure most anybody who bought the stock never got beyond the headline... certainly not to the actual debt agreement – and that’s assuming they saw either. (Doubtful.)
And if they did, they likely wouldn’t know the real significance.
I know I wouldn’t, especially the nuances, because I’m not a debt guy..
But my friend is a debt guy, and with his help here’s what really appears to be goin…