Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Big Lots Inc. (NYSE: BIG) is a favorite conservative idea from David Fried, editor of The Buyback Letter. He explains, "Investors should indulge their 'inner bargain hunter' and put the nation's largest closeout retailer, Big Lots, in their stock shopping basket.

"Shopping -- and particularly deal hunting -- continue to be hugely popular pastimes, and discount stores are a good pick in a crummy or waffling economy. The company keeps a flexible inventory, has well-located and plentiful retail locations, and its sheer size ($2.5 billion market cap) gives it international buying power smaller chains cannot match.

"A new CEO has focused Big Lots, closing underperforming stores and introducing a new goal to encourage existing customers to spend more per visit. This strategy, called 'raise the ring,' has revived sales growth and paid off in improved earnings.

Continue reading Top Picks 2007: Buyback Letter bets Big Lots is a bargain

Top Picks 2007: Buyback Letter bets Big Lots is a bargain originally appeared on BloggingStocks on Thu, 28 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.