/biz/ - Business & Finance

>American discount retailer Big Lots
Big Lots invest thesis summary: bankruptcy or 10x+ returns. It's a very high risk play!

>Bankruptcy is likely
American discount retail chain Big Lots (NYSE: $BIG) in trouble
Long-term debt of $533M in asset-based lending facility
Net loss $-463M (ttm)
6 quarters of deeply horrible negative EPS figures
$46.6M in cash, sold California distribution center (Apple Valley) and 23 stores

>Shorts still greedy, /smg/ still bearish
Shares Short (Jan 31, 2024): 6.41M
Outstanding shares: 29.22M
22% short interest

>Quickly return to profitability
Executives are reducing costs with project springboard
Project springboard: $200M+ savings in COGS, SG&A and increasing margins in 2024
Inflation is hitting hard, consumers are ditching Target and Walmart, favoring budget stores instead
If interest rates drop, housing market gets more demand meaning more sales for BIG in soft/hard home categories

>Juicy low stock price
Price/Sales (ttm) 0.02
Price/Book (mrq) 0.34
Book ratio is misleading as inventory will not be able to be sold for full price if Big Lots goes bankrupt. Don't be a BBBYQ baggie.

>Michael Burry is in
Q4 2023 13F of Burry's fund Scion Asset Management, LLC
$BIG 225,000 shares
Bought between $807,750 to $1,822,500
1.85% of portfolio

>Insider buys
2023-12-01 Christopher McCormick buys 12,000 shares at $6.29. He is Capital Allocation Chair on the board
May-July 2023: 4 buys of directors and CEO, total of 74,00 shares at prices between $4.853 - $5.005

>Useful links
https://www.biglots.com/
https://www.macrotrends.net/stocks/charts/BIG/big-lots/net-income
https://www.secform4.com/insider-trading/768835.htm
https://stocktwits.com/symbol/BIG
https://finance.yahoo.com/quote/BIG/community

>Big Lots Investor Relations
https://www.biglots.com/corporate/investors/news
https://www.biglots.com/corporate/investors/sec-filings

GME 2.0? Meme short squeeze could be a play, social media is picking it up.
>Buckle up: WAGMI

Previously:
>>57661987

does /biz/ think big lots is going to go bankrupt within the next few years? stock is doing shit and the last time i went into a big lots they had horrible furniture and unorganized shelves

Buy tomorrow at open. Sell next month for a 2x. Simple as. Screenshot this.