Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Big Lots Shares Dropped: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Big Lots (NYSE: BIG  ) made a big plop this morning, the shares down 10% and counting.

So what: No mystery here, folks. The retailer had hired Goldman Sachs to help it negotiate a going-private sale to private equity, but apparently, Goldman asked for too much money and scared off the buyers. This morning, Big Lots announced it's shutting down the auction, and has decided to go it alone.

Now what: That may not be such a bad thing. After today's drop, Big Lots shares only cost 12 times earnings -- about the going rate for slower-growing Target (NYSE: TGT  ) and Wal-Mart (NYSE: WMT  ) , and a fair price to pay for a 12% annual grower. Free cash flow at the company is strong at about 94% of reported GAAP earnings. So while the stock's no screaming bargain, the worse I can say about it is that Big Lots is a decent operation at a decent price.

Got at least a little interest in Big Lots? Add it to your Watchlist.

Fool contributor Rich Smith does not own shares of any company named above, but The Motley Fool owns shares of Wal-Mart, Motley Fool newsletter services have recommended Wal-Mart, and Motley Fool newsletter services have recommended creating a diagonal call position in Wal-Mart. The Motley Fool has a disclosure policy.

Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1496997, ~/Articles/ArticleHandler.aspx, 12/1/2015 8:59:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Smith

I love things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

Today's Market

updated Moments ago Sponsored by:
DOW 17,888.35 168.43 0.95%
S&P 500 2,102.63 22.22 1.07%
NASD 5,156.31 47.64 0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/1/2015 4:05 PM
BIG $45.03 Up +0.04 +0.09%
Big Lots CAPS Rating: ***
TGT $72.81 Up +0.31 +0.43%
Target CAPS Rating: ****
WMT $58.99 Up +0.15 +0.25%
Wal-Mart Stores CAPS Rating: ***