Sunday, January 15, 2017

Big Lots: Buy In Feb After PE Trump Hits The Stock

See Full Report

Although many are bearish on retail Big Lots has been grabbing share and boosting profits.

Last quarter's sales hit the company because of one-time reasons.

The stock is heavily shorted which can help it work on good news.

We wanted to wait for President Elect Donald Trump to take office because of his trade proposals. Big Lots sources about a quarter of their goods from China.

While many are bearish on retail Big Lots (NYSE:BIG) showed something in a weak quarter that can propel earnings in this quarter and the coming year. The company has multiple drivers in revenues and margins. We wanted to wait for some trade-war dust to settle so we want to wait for February to officially go to a buy rating.
Upgrading Our November 25th, 2015 $60 Target To $66
Back in November 2015 we expected $.50 upside to street numbers for 2016 (Pay Wall). So far the company has shown about $.24 in upside in the first three quarters. That leaves us with $.26 upside left in Q4. We expect about that to materialize. What increases our target though is the continued upside we expect next year.

Take a test drive of our premium Seeking Alpha service. Members have unique access to our wealth of experience working with multi-billion dollar hedge funds and institutions in PM, analyst and trader roles. Our market models and analysis can help you know the next move in S&P 500, gold, oil and bonds. But what we're most proud of is the interaction with our members that can help you harness your own strengths to become a great investor or trader. There is no holy grail in this business. Discover your own unique investing ability.

Click here for a free trial of Elazar's Pro Trader on Seeking Alpha.

Portions of this article may have been issued in advance to premium subscribers. All investments have many risks and can lose principal in the short and long term. This article is for information purposes only. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC and their related parties harmless. Any trading strategy can lose money and any investor should understand the risks.

#in, $spy, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD ELAZAR ADVISORS, LLC AND ITS RELATED PARTIES HARMLESS