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Liquidity Services: The Market Is Sleeping On Strong Growth Happening Right Now

Mike Arnold profile picture
Mike Arnold


  • Liquidity Services is seeing strength in all facets of its business.
  • All Surplus — a B2B auction site for surplus equipment — closed 29k auctions in April with many $100k+ items sold. Current trends point to 30% sequential GMV growth.
  • Liquidation.com is enjoying increasing numbers of live auctions on the site, driven by an increase in auctions for Target. Target, a new customer, ramped from 150-200 to 550-600 auctions recently.
  • Analyst estimates remain far too low. Expecting a beat and raise quarter, with large upward revisions to analyst models. Current GMV trends point to 35-40c EPS (consensus 13c) for the June quarter.

The tractor collects a scoop with gravel
Photo by Vadym Terelyuk/iStock via Getty Images

Liquidity Services (NASDAQ:LQDT) is positioned to benefit from number secular trends as a result of the Covid-19 pandemic: (1) the reflation trade and boom in infrastructure spending; (2) tight supply chains for equipment and

This article was written by

Mike Arnold profile picture
Full-time investor searching for great management teams, clean capital structures & scalable growth.Inactive CPA and CFA.Always trying to learn from mistakes and to stick to a process.

Analyst’s Disclosure: I am/we are long LQDT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (9)

Great Article, Thanks for sharing
Nice article Mike! You were all over this. Seems like market finally is catching up to this under the radar gem. Market cap still less than 1 billion. 3 percent of shares owned are short the name. I wouldn't be surprised to see the post earnings extension settle higher with the last of shorts squirming to give in and cover. I see 28-30 by next earnings...........
Great call! I dig all the first hand direct research and data pulls. Long left this for dead.
Mike Arnold profile picture
Nice $1.8M sale in the oil patch today with 12.5% buyer premium.


June quarter looking strong.
@Mike Arnold great job Mike!! You understood this play as well as the CEO Angrick...Thanks for the research...
If LQDT fails to give guidance it's fine with me, I've been a huge buyer all along and would buy substantially more if the price would tumble....this Company's future looks very bright to me.....
Stick to the Fundamentals profile picture
Good analysis. There are things to like about this business longer term. Not involved in the stock today, but I plan to dig into it. I do get concerned about the insider selling (CFO and a couple independent directors) in the recent trading window. It seems like the insiders have timed the big moves in this stock through their open market activity.
Mike Arnold profile picture
@Stick to the Fundamentals Angrick is the only insider that matters. He added 2M shares last year and is not selling. His employees needed to cash in on options and RSUs that were out of the money for a long time. Angrick also led Board decision to buy back $10M so I'm considering that basically an insider buy as he controls capital allocation decisions.
Micro Cap Treasure Hunter profile picture
I've also been tracking the numbers and I agree with your analysis. Stock set up for an aggressive move higher post eps. Hopefully they will give the strong next q guidance since its tracking so well
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