Huge rallies boost Tupperware, Yellow shares into 'meme stock' club

economictimes.indiatimes.com:

Tupperware Brands Corp, Yellow Corp and other U.S. companies have soared in recent days, reminding analysts of so-called «meme stock» rallies in which strong demand from retail investors fueled huge gains in stocks that had fallen out of favor on Wall Street. Shares of trucking company Yellow jumped more than 78% on Tuesday, after more than doubling in the previous session, following a news report that private equity firm Apollo Global Management was nearing a deal to provide new capital to the firm after it ceased operations and prepared to file for bankruptcy.

Home and kitchen product maker Tupperware Brands Corp's stock rose more than 32%, after sky-rocketing by more than 575% over the past seven sessions despite no material changes to the company's health. Tupperware said in April it was nearing bankruptcy, weighed down by a $705 million debt burden and slumping sales. Analysts likened the surge in Tupperware and Yellow to stellar rallies seen in shares of other struggling companies including home goods seller Bed Bath & Beyond, nail polish maker Revlon and car rental company Hertz Corp.

«I think people always want to buy the stock that is going to be the one that explodes to the upside,» said JJ Kinahan, chief executive at IG North America. «Another aspect is that these are often companies with products people know and so that also leads to a certain attraction. The last reason I believe is the large percentage of short interest in these companies,» Kinahan added.