/biz/ - Business & Finance

BIG BROS
GET READY FOR EARNINGS
TGT BEAT, WE GO TO $15 AND SQUEEZE TO $50

>>57678160
I will only be a baggie if BIG goes bankrupt really soon. Just getting back to book value is a 300% return, getting back to $100M+ net income will be a 830% return to 1660% return. Maybe even a 2490% return with a P/E of 30. This is not factoring in any sort of short squeeze. That's why it's a GME 2.0: both a fundamental play back to profitability and a possibility to squeeze shorts.

>>57646509
Prior to their recent trouble, they were profitable for fifteen years straight. Early in the pandemic, Big Lots did amazingly, but management made a lot of poor decisions later on like buying back shares at all-time highs. They also erroneously expected pandemic buying trends to continue. When buying normalized after the pandemic, stores were left with bloated inventory which they then had to off-load at a loss. Their furniture supplier and inventory problems are now behind them. They've also managed to get their SG&A expenses back under control, which ballooned after the pandemic.

Most of the problems they have faced, besides their furniture supplier, are really a result of management thinking the COVID boost in sales was a long-term trend when it obviously wasn't. The bet now is whether these problems were temporary or if something has actually fundamentally changed with the company.