Today we have a moderately speculative idea with a conservative touch: take shares in the retail chain Big Lots (NYSE: $BIG (Big Lots Inc) ).
Growth potential and duration: 11% in 16 months; 10% per year for 15 years. All excluding dividends.
Why stocks may go up: The long-term business environment is more than positive for the company.
How we act: we take shares now at $ 64.61. And then there are two options:
1.Wait for them to grow to $ 74 - this should happen in the next 16 months. This is a perfectly reasonable option, considering all the positive aspects with the company;
2.Hold shares for the next 15 years. This is the most preferable option, since over a long period of time the company will be able to realize its full potential.
What the company makes money on:
This is a chain of stores for cheap goods.
