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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Area51 who wrote (71668)	12/5/2022 11:58:24 AM
From: scbeachbum	Respond to of 78710

Declining revenues is lapping COVID sales for big items such as furniture. Margins are compressed due to them having higher inventory like TGT and KSS and other retailers which they've been bringing down. The real positives here that start showing up as higher same stores sales comps as they get beyond the COVID surge, but also increasing margins. Freight alone should add 400 basis points to their margins, as ocean freight has come down a lot but also as they reset traditional domestic truck/freight shipping contracts entered into last year or earlier this year when freight was high. Mill Road Capital did a very good assessment where they should be worth $55-70 a share easily. They are also selling 50+ stores that they own the real estate on, the majority of which located in California so should generate higher real estate values compared to other states. The big short interest is a bonus here if it can light up. I think Burry might be right with beaten down retail. Look at AEO it's come back, but a lot of others seems to floating near the bottom, like KSS, JOAN as well in that sector. Scroll down here and you can read the Mill Road Letter on BIG on how they should unlock value or sell the company: streetinsider.com

To: Area51 who wrote (71668)	1/5/2023 10:09:03 AM
From: Iron Mick	Respond to of 78710

As for QRTEA,I think so. Currently have a negative enterprise value/EBIDITA. Looking into them, their Rocky Mountain DC was an issue that should be in better standing allowing them to relieve pressure on shipments. They have also been receiving insurance payments for this as well. They were impacted, like many, for over ordering inventory when supply was tight. They're moving forward with sales & leaseback of five US properties + a few in Europe. They have been using their cash to also repay debt. They are also in a position to start buying stock back according to their repurchase agreement + the continued repayment of debt. They need to address problems with Zulily, but their management has a plan in place. Not to mention their loyal customer base. They seem to be a decent value buy.