Big Lots (BIG) surely satisfied its investors yesterday when it reported double-digit earnings growth. On an adjusted basis, net income from continuing operations jumped over 30% to $1.31 per share during the fourth quarter. Analysts couldn't keep up, because they were looking for $1.28 per share, according to Earnings.com.

Total sales went up 7%, but same-store revenue, the more vital metric, was higher by 5.1%. Cash flow from operating activities for both the quarter and the full fiscal year experienced significant increases. Gross margin expanded over both of those periods as well.

Continue reading Big Lots Living Large in Q4

Big Lots Living Large in Q4 originally appeared on BloggingStocks on Thu, 04 Mar 2010 09:20:00 EST. Please see our terms for use of feeds.

Continue reading Big Lots sees same-store sales slip slightly

Big Lots sees same-store sales slip slightly originally appeared on BloggingStocks on Thu, 06 Aug 2009 10:30:00 EST. Please see our terms for use of feeds.

Sears Holding (NASDAQ: SHLD) is recently trading at $62.10 in pre-open trading, above its close of $50.19. SHLD secured a new $2.4 billion line of credit to help finance purchases through 2012. SHLD reported Q1 of $10.1 billion, versus $11.1 billion in the same quarter a year ago. SHLD June call option volatility is at 64, puts is are at 77 verses its 26-week average of 64, according to Track Data. SHLD puts are priced higher than calls because SHLD is difficult to borrow.

Big Lots (NYSE: BIG) closed at $24.14. BIG is scheduled to report Q1 EPS on May 28. BIG June option implied volatility is at 58; October is at 56; below its 26-week average of 72, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options Update: Sears Holding put volatility up into $2.4 billion credit line originally appeared on BloggingStocks on Fri, 22 May 2009 08:30:00 EST. Please see our terms for use of feeds.

Discount retailer Big Lots Inc. (NYSE: BIG) saw its shares surge higher in Wednesday trading after it posted a fourth-quarter profit from continuing operations that came in ahead of analysts expectations and offered a better-than-expected outlook.

Clearly, investors view BIG as a recession stock to own.

Earnings from continuing operations totaled a dollar per share, ahead of the 93 cents per share analysts were expecting, and 3 cents higher than the year-ago quarter. Revenue fell to $1.37 billion from $1.41 billion last year, but beat expectations of $1.36 billion. Same-store sales fell a mild 3.2%, as sales of discretionary items, such as furniture and toys, were challenging.

Continue reading Recession stock: Big Lots

Recession stock: Big Lots originally appeared on BloggingStocks on Thu, 05 Mar 2009 15:50:00 EST. Please see our terms for use of feeds.

I grew up in the 1970s and recall fondly watching the TV series "Dallas" with my family on Friday nights. Everything on the culturally sensational show was big, including its storylines.

Of course, one of my favorites was "who shot J.R.?" But another favorite was the return of Bobby Ewing after a supposed death that was resolved by stating the entire season was a dream.

I like to use the dream analogy for stocks that have made a round trip journey in a short period of time. If a stock goes up only to return to the level previously, it is as if the investor woke from a dream and the stock never actually moved up.

Such is the story of closeout retailer Big Lots (NYSE: BIG).

Shares started the year around $15 per share. Enthusiasm over profits and performance as consumers in a struggling economy sought lower-priced options fueled a gain in BIG.

Shares more than doubled in value, but hit a roadblock in late August. At that time, earnings that beat estimates were not enough to keep the momentum going. I wrote about the company at that time and suggested that investors in BIG should take money off the table.

Continue reading Will Big Lots make a comeback in 2009?

Will Big Lots make a comeback in 2009? originally appeared on BloggingStocks on Wed, 31 Dec 2008 13:00:00 EST. Please see our terms for use of feeds.

When the Bureau of Economic Research declared that the recession had officially begun in December 2007, the entire retail sector shrugged its shoulders and said, "No kidding."

Shares of companies that deal directly with the consumer, except for the deep discount retailers, have known for some time that the economy was struggling. Sales have been declining steadily and, with the deteriorating operating environment, shares of the retail stocks have been absolutely crushed.

The entire retail group is one of the biggest losers in the market this year, with some stocks down 80% to 90%.

That said, those retailers that offer big discounts, including Wal-Mart (NYSE: WMT) and Big Lots (NYSE: BIG), are doing much better on a relative basis.

Continue reading Stock up on Overstock.com (OSTK)

Stock up on Overstock.com (OSTK) originally appeared on BloggingStocks on Thu, 04 Dec 2008 14:01:00 EST. Please see our terms for use of feeds.

With the end of the year fast approaching, it's time to start putting together "best of" and "worst of" lists for 2008. This entry is a little bit of both, but it's admittedly heavy on the "worst of." Among the current members of the S&P 500 Index (SPX), just 11 were sitting on a year-to-date gain as of the close of trading on Monday, November 24. Since Big Lots (NYSE: BIG) is unchanged, that means we have a whopping 488 securities sitting on a loss for the year.

Let's start with the bad news first. Among the worst-performing stocks on the SPX, the six top spots are claimed by stocks in the Insurance and Real Estate sectors. General Growth Properties (NYSE: GGP) has the dubious honor of dropping nearly 98% on the year, and -- not surprisingly -- American International Group (NYSE: AIG) isn't far behind.

Continue reading Year-to-date winners and losers of the S&P 500 Index

Year-to-date winners and losers of the S&P 500 Index originally appeared on BloggingStocks on Wed, 26 Nov 2008 10:00:00 EST. Please see our terms for use of feeds.

For a bearish hedged play on this stock, I would consider a September bear-call credit spread above the $35 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in 4 weeks as long as BIG is below $35 at September expiration. Big Lots would have to rise by more than 11% before we would start to lose money. Learn more about this type of trade here.

Continue reading Big Lots (BIG) drops on soft sales outlook

Big Lots (BIG) drops on soft sales outlook originally appeared on BloggingStocks on Tue, 26 Aug 2008 13:15:00 EST. Please see our terms for use of feeds.

Big Lots (NYSE: BIG) is the largest broadline closeout retailer in the United States. Stores offer such staples as food, health and beauty products, plastics, furniture, toys, lawn tools, electronics, apparel and small appliances. The goods are generally products that have been overproduced, or discontinued, and are typically offered at 20-40 percent below discounters' prices. The company currently operates 1,354 stores in 47 states. Wholesale operations are conducted through Big Lots Wholesale outlets.

The firm pleased investors last week, when it reported Q1 EPS of 42 cents and revenues of $1.15 billion. Analysts had been expecting 36 cents and $1.14 billion. Management also guided Q2 EPS to 21-25 cents (23 cent consensus) and FY08 EPS to $1.80-$1.90 ($1.78 consensus). Wedbush Morgan subsequently reiterated its "strong buy" rating on the shares and Piper Jaffray upped its recommendation to "buy".

Continue reading Big Lots (BIG): Shares define bullish 'flag' pattern

Big Lots (BIG): Shares define bullish 'flag' pattern originally appeared on BloggingStocks on Thu, 05 Jun 2008 14:35:00 EST. Please see our terms for use of feeds.

• DJIA 12,642.47 (+48.20)
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• NASDAQ 2,508.32 (+21.62)
• 52-WEEK LOWS
• Top 10 Analyst Calls (ALU, CHS, LONG, IFX, JNPR, MAR, MFA, NSC, SNDA, VVUS)

Continue reading Closing Bell: stocks run on GDP, retail, and lower oil

Closing Bell: stocks run on GDP, retail, and lower oil originally appeared on BloggingStocks on Thu, 29 May 2008 16:57:00 EST. Please see our terms for use of feeds.

Continue reading Five stocks to love from CNNMoney

Five stocks to love from CNNMoney originally appeared on BloggingStocks on Mon, 19 May 2008 16:19:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Bear upgraded Credit Suisse Group (NYSE: CS) to Peer Perform from Underperform as they believe the company's balance sheet will stabilize and the company's Private Banking business is holding up well in difficult conditions. Goldman, which raised shares to Neutral from Sell, believes the worst is over regarding the market downturn.
• Citigroup upgraded Masimo Corporation (NASDAQ: MASI) to Buy from Hold citing expectations of a strong Q1 report, expected FDA approval for hemoglobin monitoring in 2H08, and valuation.
• Marvell Technology Group Ltd (NASDAQ: MRVL) was raised at Friedman Billings to Outperform from Market Perform based on valuation and improved business conditions.

• Goldman raised LM Ericsson Telephone Company (NASDAQ: ERIC) to Neutral from Sell.
• JP Morgan upgraded Big Lots Inc (NYSE: BIG) to Overweight from Neutral.
• Petro-Canada (NYSE: PCZ) was upgraded at CIBC to Sector Outperformer from Sector Performer.

Analyst upgrades: CS, ERIC, MASI and MRVL originally appeared on BloggingStocks on Mon, 28 Apr 2008 11:05:00 EST. Please see our terms for use of feeds.

Big Lots (NYSE: BIG) is the largest broadline closeout retailer in the United States. Stores offer such staples as food, health and beauty products, plastics, furniture, toys, lawn tools, electronics, apparel and small appliances. The goods are generally products that have been overproduced, or discontinued, and are typically offered at 20-40 percent below discounters' prices. The company currently operates 1,353 stores in 47 states. Wholesale operations are conducted through Big Lots Wholesale, Consolidated International and Wisconsin Toy outlets. Target (NYSE: TGT) and Wal-Mart (NYSE: WMT) are major competitors.

The firm pleased investors last week, when it reported Q4 EPS of 93 cents and revenues of $1.41 billion. Analysts had been looking for 84 cents and $1.41 billion. Management also guided Q1 EPS to 30-35 cents (26 cent consensus) and FY09 EPS to $1.70-$1.80 ($1.53 consensus). Wedbush Morgan and Soleil subsequently declared the issue a "buy" and issued price targets of $26 (W) and $32 (S).

Continue reading Big Lots (BIG): Share price defining bullish 'pennant'

Big Lots (BIG): Share price defining bullish 'pennant' originally appeared on BloggingStocks on Mon, 10 Mar 2008 13:21:00 EST. Please see our terms for use of feeds.

3Q 2007 operating income grew 10X operating income from 3Q 2006, to $22.7 million from $2.3 million. CEO Steve Fishman credits the vast improvement in operating profit to a much more efficient product distribution system and higher gross margin dollars per square foot.

Continue reading Big Lots (BIG) reports big third quarter

Big Lots (BIG) reports big third quarter originally appeared on BloggingStocks on Tue, 04 Dec 2007 16:10:00 EST. Please see our terms for use of feeds.

Deep discount retailers may not offer the most extensive selection of merchandise in town, but they usually have what you are going to want before long and the bargains keep you coming back. A leader in the art of finding and offering the good deals is headquartered in Columbus, Ohio.

Big Lots (NYSE: BIG) is the largest broadline closeout retailer in the U.S. Stores offer such staples as food, health and beauty products, plastics, furniture, toys, lawn tools, electronics, apparel and small appliances. The goods are generally products that have been overproduced, or discontinued, and are typically offered at 20-40 percent below discounters' prices. The company currently operates 1,369 stores in 47 states. Wholesale operations are conducted through Big Lots Wholesale, Consolidated International and Wisconsin Toy outlets. Wal-Mart (NYSE: WMT) and Target (NYSE: TGT) are major competitors.

Continue reading Big Lots (BIG): Necessities for cheap

Big Lots (BIG): Necessities for cheap originally appeared on BloggingStocks on Wed, 05 Sep 2007 15:50:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merriman upgraded shares of Taser Int'l (NASDAQ: TASR) to Buy from Hold on valuation following the 25% decline in price since late July, accelerating law enforcement demand and upside potential from the recently launched personal TASER C2.

• Lehman upgraded shares of Motorola (NYSE: MOT) to Overweight from Equal Weight as they believe increased production and opex progress in Q3 could signal a turnaround at the company's phone unit.

• Jefferies upgraded Advantest (NYSE: ATE) to Hold from Underperform on valuation.

• STMicroelectronics (NYSE: STM) was upgraded to Market Perform from Underperform on valuation at Bernstein.

• Stifel upgraded shares of Joy Global (NASDAQ: JOYG) to Buy from Hold following the in line Q3 report as they believe bad news is reflected in valuation...

• Idacorp (NYSE: IDA) was upgraded to Market Perform from Under Perform at Wachovia.

• UBS upgraded TDK Corp (NYSE: TDK) to Neutral from Sell.

• Wedbush raised Big Lots (NYSE: BIG) to Buy from Hold, with a $35 target, and DSW Inc. (NYSE: DSW) to Hold from Sell, with a $29 target.

• LabCorp (NYSE: LH) was upgraded to Outperform from Neutral at Cowen.

Analyst upgrades 8-30-07: ATE, BIG, MOT and TASR originally appeared on BloggingStocks on Thu, 30 Aug 2007 10:45:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Matrix upgraded Marvel Entertainment (NYSE: MVL) to Buy from Hold as they don't think the company's improving performance is reflected in its falling stock price. They think Marvel represents a good entry point at current levels.

• Kevin Dann upgraded shares of AutoZone (NYSE: AZO) to Buy from Hold on valuation and highlighted their belief that AutoZone may not be seeing as much sales weakness as investors expect. They recommend taking advantage of the recent share weakness and raised their target to $135 from $125.

• Gabelli recommends Home Depot (NYSE: HD) as a long-term buy with a $43 target, upgraded shares from Hold, with the Supply division uncertainty now eliminated. They view the sale positively, even at the lower price.

• JP Morgan upgraded Molson Coors (NYSE: TAP) to Overweight from Neutral, and believes Molson will monetize its solid balance sheet and free-cash flow yield to benefit the shareholders. They also consider valuation to be attractive.

• Semtech (NASDAQ: SMTC) was upgraded to Outperform from Market Perform at William Blair following the strong Q2 report and outlook...

• Big Lots (NYSE: BIG) was upgraded to Market Outperform from Market Perform at Avondale.

• Longbow raised TTM Technologies (NASDAQ: TTMI) to Buy from Neutral.

• Breen Murray raised to Intevac (NASDAQ: IVAC) to Hold from Sell.

• Stifel upgraded Arch Capital (NASDAQ: ACGL) to Buy from Hold.

Analyst upgrades 8-29-07: AZO, HD, MVL and TAP originally appeared on BloggingStocks on Wed, 29 Aug 2007 10:36:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Oppenheimer expects a seasonally stronger 2H07 out of Atheros Communications (NASDAQ: ATHR) given continued growth from 802.11n design wins and started shares with a Buy rating.

• AG Edwards believes Analog Devices (NYSE: ADI) has plenty of room to gain additional market share and started shares with a Buy rating.

• Jefferies believes Omniture (NASDAQ: OMTR) is positioned to benefit from the rapid growth of Web analytics, but has near-term valuation concerns, and started shares with a Hold rating.

• Deutsche Bank started TriZetto (NASDAQ: TZIX) with a Buy rating, citing the company's diversified product mix and opportunities to drive adoption rate of consumer-driven health plans for their Buy rating...

• The Banc of America assumed the entertainment sector with a Market Weight rating and assumed coverage of Time Warner (NYSE: TWX) and News Corp (NYSE: NWS.A) with Buy ratings and a $25 target and $26 target, respectively, as well as The Walt Disney Co (NYSE: DIS) and Viacom (NYSE: VIA.B) with Neutral ratings and a $37 target and $43 target, respectively.

• JP Morgan started Big Lots (NYSE: BIG) with a Neutral rating.

Analyst initiations 6-19-07: BIG, DIS, NWS, TWX and VIA.B originally appeared on BloggingStocks on Tue, 19 Jun 2007 11:31:00 EST. Please see our terms for use of feeds.

Wal-Mart, Kohl's and Target see rise yesterday originally appeared on BloggingStocks on Wed, 30 May 2007 15:18:00 EST. Please see our terms for use of feeds.

There are plenty of discount and closeout retailers out there, but Big Lots Inc. (NYSE: BIG) has developed a competitive advantage that allows it to compete more effectively and efficiently. Rather than concentrating just on supply chain management to get products where they need to go, on time and at an acceptable price, Big Lots, with 1400 stores, has also developed a financial supply chain to help its vendors, while at the same time helping itself.

Several years ago, Big Lots realized that many of its vendors were having cash flow problems of their own, sometimes affecting their abilities to get products into stores. The vendor's cost of borrowing and lack of access to capital delayed production and shipment. Utilizing a third party, PrimeRevenue, Big Lots partnered with its vendors. All invoices are now posted online within 24 hours through PrimeRevenue. A vendor knows exactly when it will get paid and how much. Vendors can either sell the invoices to a participating financial institution and receive money within 24 hours or wait for full payment. Vendors also get to borrow money based on Big Lots' good credit rating, driving the cost of borrowing down for many vendors. This, in turn, means Big Lots lowers its own cost of goods.

Integrating vendors into its financial supply chain means that Big Lot buyers, who want the best possible price for goods, and vendors who were once reluctant to lower their prices, now work within the same system. Vendors know exactly what and when they will get paid, negating their need to push prices up to cover cash shortfalls. Big Lots estimates it has shaved 4% off the price of goods by eliminating financial inefficiencies in its supply chain. Both sides benefit. Big Lots buyers get better terms and long-term vendor relationships. Vendors get improved cash flow. So far, the program is a success. Big Lots 1Q 2007 comparable sales were up 4.9%, and total sales were up 3.5% to just over $1 billion.

Big Lots financial supply chain originally appeared on BloggingStocks on Mon, 14 May 2007 09:55:00 EST. Please see our terms for use of feeds.