Short Sellers In Big Lots Ahead of Earnings (BIG)

Retail

Published: March 1, 2008 7:36 am

Last Updated: March 27, 2020 12:33 am

On Wednesday morning we’ll get to see earnings out of Big Lots Inc. (NYSE: BIG). The estimates for the closeout retailer from First Call are $0.84 EPS on $1.41 billion in revenues. Next quarter estimates are $0.26 EPS on $1.11 billion in revenues. Estimates for fiscal Jan-2009 are $1.53 EPS on $4.64 billion in revenues.

Its strategy change to add some slightly more upscale items couldn’t have come at a worse time when you consider that the discretionary income of its customers flew out the window of the 1978 station wagon.

Analysts have an average price target of $18.00. We’d also note that the short interest has grown to more than 24 million shares, which is almost 8-days worth of trading volume.

Big Lots’ 52-week trading range is $12.40 to $36.15. This is one we have been critical of for a while, although it appears that at least most of the damage to the stock may have been seen. Either way, we think it will take a long time, a lot patience, and maybe even a miracle for this to not stay in the bottom third of ist 52-week trading range since it has already recovered sharply.

Despite our negativity, we’ll still be the first to admit that any "non-atrocious news" will probably create a minimum of a short covering rally.

Jon C. Ogg
March 1, 2008

Are You Ahead, or Behind on Retirement? (sponsor)

If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention.

Finding a financial advisor who puts your interest first can be the difference between a rich retirement and barely getting by, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been carefully vetted, and must act in your best interests. Start your search now.

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.