Sell Big Five Sporting Goods

Sell Big Five Sporting Goods (NSDQ: BGFV)

Big Five has been a tough stock to own. It is down 45% since my recommendation roughly one year ago. Despite the closure of many competing stores, any incremental revenue from new customers has been whittled away by markdowns and discounts.

Recent commentary from Footlocker (NYSE: FL) and Hibbets (NSDQ: HIBB) highlight increased pressure on profits due to price cutting.

I don’t see the stock going much lower, partly due to the company’s solid balance sheet and cash flow but believe my focus and your dollars can be more productive elsewhere.

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