Big Lots: Big Challenges

Jul. 16, 2023 12:14 PM ETBig Lots, Inc. (BIGGQ) StockBIGGQ5 Comments

Summary

  • Big Lots has seen a very large and painful retreat post the pandemic.
  • Profits from sale-and-lease-back transactions have been squandered on share buybacks, while adding rent to the operating expense base of the business.
  • The company is facing real losses now, has taken on some debt, and is resorting to its last sale-and-lease-back card.
  • The situation is highly fluid and uncertain. I see no need to get involved with this battleground stock.
  • Looking for more investing ideas like this one? Get them exclusively at Value In Corporate Events. Learn More »

Luxury Furniture Goods

SolStock

In the summer of 2020 I concluded that shares of Big Lots (BIG) were seeing big gains after a big performance. The company was on fire on the back of accelerating operating performance after the initial scare reaction

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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