This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The 5 Dumbest Things on Wall Street This Week: March 8

4.) Tuesday Mourning

Tuesday's (TUES) CEO is gone with the wind and for the sake of Lynyrd Skynyrd, we have no idea why.

Dallas-based discount retailer Tuesday Morning saw its stock sink over 13% to $7.80 Monday after it unexpectedly announced the resignation of Brady Churches from the company's top job. Tuesday Morning said Michael Rouleau would serve as its interim CEO, overseeing the chain's 830 stores while it searches for a permanent replacement.

Churches assumed the CEO position merely six months ago when the company's stock was trading just under $6. The shares had risen under his leadership almost 60% to more than $9 prior to Monday's collapse. Net sales at the company were also heading in the right direction with Churches at the helm, rising 4.5% to $285.3 million in the second quarter of fiscal 2012.

"After recent discussions, the Board and I have determined that this transition is in the Company's best interest. I am proud of the team's progress, particularly with respect to merchandising and new initiatives aimed at improving the overall guest experience," stated Churches in the press release. He added that he plans to remain with the company as a consultant.

Well Brady, it's good to know you and the board had "discussions" before your big decision. Glad you guys were able to get together for a nice little chat. Warms our heart it does.

But do you really think this sudden announcement was the best way to let your shareholders in on your special conversation? After all that happened with the company's previous CEO Kathleen Mason, did you and your board buddies ever consider a reasonable power transfer as opposed to dropping a bomb on your shareholders?

Mason, in case you missed it, was fired by the board last June after her 12-year run at the company ended with a string of disappointing earnings reports and a depressed stock price. She later sued Tuesday Morning, saying that she was discriminated against after she disclosed her breast cancer. The company maintains that her case has no merit and her firing was lawful.

Yes, it's been a turbulent time in the corner office at Tuesday Morning. But still -- to borrow again from the great Ronnie VanZant -- the train rolls on.

We just recommend staying away until Tuesday Morning's brass comes clean about Churches' disquieting departure.

Far, far away.

2 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs