Tuesday Morning Is Out, National Beverage Is In!

I just finished reading a news article where the board of directors announced they were canceling the dividend for Tuesday Morning (TUES), while they pondered what to do with any future earnings? Since I think there should be no question in this regard, PAY YOUR SHAREHOLDERS!, I placed an order to sell my shares. When I bought in the price was good, the dividend was great and I really like their stores. I'll probably still shop there occaisionally, but it was time for their stock to go.

I will be replacing Tuesday Morning with National Beverage (FIZZ), whose products (Shasta and Faygo) I am very familiar with. I like the way this company strives to run a low cost operation and the fact that they've been in business for a very long time. Add to this a low volatility rating for the stock, a 5 year average return on equity of 14% and a dividend yield of 10.7% and this company is looking like a bargain to me. I have considered adding shares of this company to my investments in the past, but I have to say I'm pretty happy to buy in now with the price being roughly half of their 52 week high. All in all, I think this will make a wonderful addition to my stock portfolio.