I just bought BIG 5 shares at 8.00. I think it is a very straight forward business. I hope I can get luck so that I can buy even more at below 7. A bit of description about the company: BIG 5 is an employee-owned company with 20+ year experience..selling at less than current PE 10, P/B is around 1.52, 4.4% dividend paying stocks, ROE 20% and consistent gross margin at 20% and operating at 5% (normally is at 8%).
I believe the current sluggish consumer condition is a temporary event although we do not know how long it will stay like this. I think the retailers always come out with a strategy to cope with temporary adverse situations like this: sale or discounts for example.

Recently, they just move themselves to a new distribution center. The cost savings will start to kick in the 2nd quarter I hope.

Although the same store sale is declining, I believe that the new store openings this year will continue to be successful like others in the past.

These will make up the differences to compensate the declining of same store sale.

The second quarter guidance has been lowered to around 0.06 cent and thus the entire year eps is predicted to be around 0.70 down from a regular 1.20.

I have a feeling from my field observations that there will be quite a surprise in revenue wise for the second quarter.

Unless there is an extra-ordinary charge in the inventory, I think my calculation shows that it is a very reasonable valued company.

Jeff Tan