Top 20 advisors: David Fried bets on Big Lots for buybacks

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

David Fried, editor of the Buyback Letter, chose Big Lots Inc. (NYSE: BIG) as his favorite stock for 2007. It rose 39% as of 6/1/07. Here is David's original recommendation for Big Lots and his new favorite stock for the second half of the year.

Updating the stock, the advisor now says, "Big Lots remains a buy in our stock pickers portfolio. On May 10, the company said its comparable-store sales for Q1 increased 4.9%. The company said Q1 retail sales increased 3.5% to $1.12 billion.

"At the end of May, the company reported that its quarterly profit more than doubled. Big Lots, which has closed stores and revamped its merchandise to improve business, said earnings rose to $28.8 million, or $0.26 a share, from $13.7 million, or $0.12 a share in the year ago period.

"The company said comparable-store sales increased 4.9% for the quarter. Net sales rose 3.4% to $1.13 billion from Q1 of last year. Big Lots also hiked its 2007 earnings outlook to $1.25 to $1.30 a share from continuing operations. It also expects Q2 earnings from continuing operations of $0.07 to $0.10 a share."