Welcome back bagholders…
$Big Lots (BIGGQ.US)$ Last chance for people to cut loss with mercy of shorters. If you need to cut loss, do it right now. As noble NYSE company in consumer stable, a lot of mutual funds have positions that will only cut loss at month end or quarter end.
Current sales is reportedly 2.5M cash for everything asset, liability, cash. Count how much we can get… Haaa, 0.1 dollar. NOT that bad. Any happy bidder before Oct 15 will make Nexus willing to pay a little more. You cannot buy business of a store with 20K. Wtf I should have bought a store with my 20K (joke, typical a 99 cents business cost you 50k + inventory to buy)
For myself, it means very little. 20k orginal cost turns into 200. I’ll bag hold until the end. If I am lucky and new big lots are good, future class action could recover perhaps 10% of loss for their wrong doing. Higher than what if I sell at 0.5. As voluntary bandruptcy, Big shits still have a lot of equity, balance on depreciation, brand, cheaper than market rental contracts, such that buying contract is deemed more or less unfair. (Note that does not apply to UK company for differnt law system. UK including Cayman, BVI, large shareholders can manipulate easily to surrend. Because debt holders are considered senior owner of company) Don’t have amount but 1 to 3 dollar before news should be a good reference.
For people who want to buy trash in OTCBB. Price will soon drop further even we have a deal at 0.1. Condition to bet is like this: 1) their coming earnings and next earnings are promising with good revenue. or federal reserve cuts rate fast. 2) seeing massive lay off / termination ( to expensive union workers.) more than just distribution center. That is condition that buyer would consider. 3) Shenk family or any big shareholder fights on court to the buying out plan is unfairly cheap.
I need to see contract and earnings before doing anything. Might bet with another 200 hoping some happy bidder will make Nexus to pay 1% more which 7M, which will make offer to like 40 cents. Just don’t be a jerk.
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