Hedge funds don’t, as a rule, spend a lot of time following micro-caps, so it’s fascinating when one does pop. These are usually SPACs—including the recently closed Fast Radius—and there tends to be a smattering of unproven biotechs, the kind that hit big if they hit at all.
So what’s Tuesday Morning doing on this list, with four new owners in 4Q21 and six other firms upping their stakes? The off-price home goods retailer went into bankruptcy in the early days of the pandemic but has since emerged and began trading on the Nasdaq in May. Tuesday Morning’s stock did pretty well for a while, then tanked in September. The swoon continued and now shares trade near their historic lows. And yet Tuesday Morning’s most recent quarterly results showed a $0.02 EPS gain versus an expected -$0.08 loss. Something’s going on here.