Tempur Sealy Gets Laid Out After Mattress Firm Contract Cancellation

Tempur Sealy International Inc (NYSE: TPX) shares are trading lower by $17.30 (28 percent) at $45.89 in Monday's session.

Investors are exiting the issue following the announcement that Mattress Firm has terminated all contracts with the company as of January 27. This the direct result of no changes being made to their contracts by Tempur Sealy as requested by Mattress Firm last week.

After a lower open, it managed a brief bounce to $47.52 before swooning all the way to $44.52 and staging a rebound. That low coincides with its February 2014 low of $45.07.

Since making that low, it has rebounded to the $46.00 area, but so far has not been able to remain in the $46.00 handle.

The huge decline is taking place on much heavier than average volume. At this time, it has already traded 10 times Friday's volume as 10.4 million shares have traded compared to Friday's volume of only 1.8 million.