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Let’s Talk Tupperware! If It’s Trending, Should You Buy It?

Similar to other sensational Stock Market moments like AMC or Gamestop, the Tupperware fiasco seemed to grip America’s attention.

Is it the necessity of those perfectly proportionate plastic containers? Is it the rollercoaster of going out of business and then the next week trending in the green?

It’s time to figure out what happened with Tupperware, relevant data, what they reported to the Securities and Exchange Commission, and if you missed an investment opportunity.

What Happened to Tupperware (TUP)?

Tupperware is the iconic plastic container company named whenever a plastic food storage box is brought up, even if it isn’t technically Tupperware. It had a tough few years, namely because of competitors and old marketing techniques. Here’s a breakdown of some recent events:

The Timeline:

Pandemic 2020: Short surge, possibly due to everyone cooking in their kitchen.
2020-Early 2023: A steady decline and inability to pay off debts.
April 2023: TUP announced nearing Bankruptcy.
June 2023: NYSE threatened to delist TUP because of its low value.
July 2023: Penny Stock investors started buying shares at 0.61 cents, making the company trend.
August 2023: TUP rose to around $5 a share, nearly 47%, significantly better than the company’s recent history.

In August of 2023, CNN Business wrote, “Since July 18, shares of Tupperware have skyrocketed over 850%,” painting a picture of solid redemption for Tupperware fueled by meme culture and a strategy capitalizing off bankrupt companies.” But will it last?

Misleading Numbers

Let’s take a look at the data using Equities Lab’s software. Here is a ticker created for Tupperware (TUP) to see how the company compares to the S&P 500.

The image below shows the stock over a year with a continual decline.

The following table displays a total return of -92.54%. No wonder they were having such trouble, with an Annualized Alpha of -111.5%. It was nowhere near consistently beating the market.

What about the last 10 years? Let’s check it out! From 2013 to 2023, the steady decline is still there, with a little upward motion in 2020-2021 due to the pandemic, but not enough to sustain the stock.

The table tells a similar story, with nearly all of the data looking poorly.

So if TUP’s price skyrocketed over 850%, does that automatically mean they’re in the green? That’s a big No! Based on the data above, you can see that Tupperware has been struggling for an extended period of time. It’ll take more than Penny stock traders to save the day.

What Does the SEC say?

All this info about TUP getting close to bankruptcy, potential poor management, etc., makes us want to explore more. What has Tupperware been reporting to the U.S. Securities and Exchange Commission?

Through Equities Lab, you can click on the SEC link by going to the positions map tab, clicking on TUP, finding the SEC link, and following it.

The initial page that will appear is below. The rabbit hole continues as you can look into company filings at the top in red.

Tupperware’s latest filings seemed reflective of its recent reports.

Relevant information reported about Tupperware in SEC;

Funding of $21 million.
Owes $348 million.
Debt will be reduced by 55 million by the year 2025.
Reduce interest payments by $150 million.

There seems to be a lot of money moving around, lots of red, and even more gossip. Now you’re educated on the nitty-gritty of what’s happening withTupperware.

Did you miss out?

Maybe you’re thinking about the past week and wondering if you missed out by not investing in TUP, or maybe you should invest in TUP now. The answer? Don’t invest in something because it’s trendy, seems familiar, or because you got the scoop of some upward motion. Look at all the information provided.

Did you miss out? TUP has declined for over a decade, and people are investing based on meme culture and hype. Can you make money with trends? Yes! But the risk is much greater than if you easily lean into quantitative investing strategies.

Takeaways

Tupperware may have skyrocketed over 850% within a couple months, but that doesn’t mean it was automatically worth investing in. Even if it is trending, doing background research can make a world of difference when you’re investing.

Using Equities Lab, applying the SEC link, and doing your due diligence will provide phenomenal investment opportunities or thwart some terrible downturns. Don’t invest based on trends. Invest based on the best-applied data.