For those who stuck with Tupperware (NYSE:TUP) through the rough times, your diamond-handed patience is being rewarded as we speak. Tupperware is up nearly 49% at the time of writing as another rally is already in progress.
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What prompted this explosive growth? No one really knows. There are no significant product announcements out of the company—not that there really could be anyway; what could they make? Full-body Tupperware?—nor are there any significant roster moves in the C-suite or anything like that. About the only thing that might be giving Tupperware some support is word of a BlackRock (NYSE:BLK) partnership arrangement. But that’s news that’s almost three weeks old.
Another potential source comes from earlier this week, when Tupperware found itself on the business end of a possible short squeeze. Thus, we may be seeing shorts flood back in in a bid to cover their positions. With Tupperware also frantically combing its real estate holdings in search of potential savings, as well as a range of other options, there’s no doubt that Tupperware has the philosophy of shareholder accountability down, which is good news. Of course, since Tupperware has a panoply of competitors from margarine markers to styrofoam take-out container makers, that may only do so much good.
Either way, it’s not looking good for Tupperware, particularly in the hedge fund department. Hedge funds lowered their holdings by 6,100 shares in the last quarter. That’s only a small fraction of their total holdings—currently up over 220,000—so all told, hedge funds are still considered Neutral in terms of confidence. However, this is also the third consecutive quarter that featured hedge funds divesting shares.
