Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Equity Bottom-Up

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Tuesday Morning (TUEM) reported its long awaited fiscal fourth quarter (June) results providing insight as to the collateral damage TUEM has suffered from rising freight costs outstripping comparable sales growth. TUEM reported fiscal fourth quarter sales ahead of our estimates, but the bottom line failed to impress with TUEM reporting a net loss and negative EBITDA.</li></ul> <ul type="disc"><li>We have been sounding the alarm bells related to inflationary pressures the business could experience from higher wages and increased supply chain costs but underestimated the sheer magnitude of impact.</li></ul> <ul type="disc"><li>TUEM has a new management team yet to make many changes to a business still requiring some hand holding.</li></ul> <ul type="disc"><li>We believe the sell-off was an overreaction to the new management team laying out the need for more time to restructure the business. Our price target remains $6.</li></ul>


Tuesday Morning (TUEM) reported its long awaited fiscal fourth quarter (June) results providing insight as to the collateral damage TUEM has suffered from rising freight costs outstripping comparable sales growth. TUEM reported fiscal fourth quarter sales ahead of our estimates, but the bottom line failed to impress with TUEM reporting a net loss and negative EBITDA. We have been sounding the alarm bells related to inflationary pressures the business could experience from higher wages and increased supply chain costs but underestimated the sheer magnitude of impact. TUEM has a new management team yet to make many changes to a business still requiring some hand holding. We believe the sell-off was an overreaction to the new management team laying out the need for more time to restructure the business. Our price target remains $6.

<ul type="disc"><li>
Tuesday Morning (TUEM) has yet to report fiscal fourth quarter (June) results, but it is becoming clear the logistical issues plaguing the retail sector could have an impact on TUEM’s business as well. Even though TUEM has reset its business through new management and merchandise, it might not be enough for the bottlenecks within the industry.</li></ul> <ul type="disc"><li>Momentum from consumers being outside and shopping at brick-and-mortar stores should benefit TUEM.</li></ul> <ul type="disc"><li>The June quarter included TUEM redesigning its website and improving its merchandise. Inventory levels started to improve at the store level with clearance items also moved around the store instead of usually being in one spot.</li></ul> <ul type="disc"><li>TUEM has yet to report June quarter results, which we anticipate could come shortly after Labor Day weekend. We had made some adjustment to our June quarter estimates in July based on TUEM not having enough inventory. At the time, we reduced our sales estimate by approximately $7.2 million. We continue to carry such a viewpoint for the June quarter.</li></ul>


Tuesday Morning (TUEM) has yet to report fiscal fourth quarter (June) results, but it is becoming clear the logistical issues plaguing the retail sector could have an impact on TUEM’s business as well. Even though TUEM has reset its business through new management and merchandise, it might not be enough for the bottlenecks within the industry. Momentum from consumers being outside and shopping at brick-and-mortar stores should benefit TUEM. The June quarter included TUEM redesigning its website and improving its merchandise. Inventory levels started to improve at the store level with clearance items also moved around the store instead of usually being in one spot. TUEM has yet to report June quarter results, which we anticipate could come shortly after Labor Day weekend. We had made some adjustment to our June quarter estimates in July based on TUEM not having enough inventory. At the time, we reduced our sales estimate by approximately $7.2 million. We continue to carry such a viewpoint for the June quarter.

<ul type="disc"><li>
Tuesday Morning (TUEM) has evolved into a “mini-Burlington” with the hiring of a third executive that comes with past work experience from Burlington Stores (BURL). At the beginning of May, TUEM named former COO from BURL, Fred Hand, as its new CEO. On May 21, 2021, TUEM names former BURL CFO, Marc Katz, as its interim CFO.</li></ul> <ul type="disc"><li>TUEM shares are now approved to list on the NASDAQ beginning May 25, 2021.</li></ul> <ul type="disc"><li>Prior to the new hires, TUEM was operating with the merchandising as the focal point. Chief Merchandising Officer, Paul Metcalf, has been responsible for improving product quality at the stores and concentrating on raising average receipt size.</li></ul> <ul type="disc"><li>Consumer discretionary spending has increased in recent months with the economy reopening. TUEM stands to benefit from consumers spending more in-store versus shopping online.</li></ul>


Tuesday Morning (TUEM) has evolved into a “mini-Burlington” with the hiring of a third executive that comes with past work experience from Burlington Stores (BURL). At the beginning of May, TUEM named former COO from BURL, Fred Hand, as its new CEO. On May 21, 2021, TUEM names former BURL CFO, Marc Katz, as its interim CFO. TUEM shares are now approved to list on the NASDAQ beginning May 25, 2021. Prior to the new hires, TUEM was operating with the merchandising as the focal point. Chief Merchandising Officer, Paul Metcalf, has been responsible for improving product quality at the stores and concentrating on raising average receipt size. Consumer discretionary spending has increased in recent months with the economy reopening. TUEM stands to benefit from consumers spending more in-store versus shopping online.

United States

Tuesday Morning Corporation retails home furnishing, gifts, and related items. The Company offers bath and body, bed, craft, dining, kitchen, furniture, fashion accessories and products. Tuesday Morning serves customers in the United States.

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Tuesday Morning (TUEM US)

TUEM: Overreaction

The reaction in the stock price yesterday was an overreaction. TUEM has a brand-new management team laying out the process of moving TUEM back to a...

BWS Financial Inc

TUEM: The Global Factor

TUEM's exposure to freight and wage inflation is very likely but TUEM had a head start on sourcing merchandise than its competitors since it was...

BWS Financial Inc

TUEM: Mini-Burlington Listing on NASDAQ

Tuesday Morning (TUEM) has built an executive who has previously worked at Burlington Stores (BURL) during BURL's growth phase and could contribute...

BWS Financial Inc

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