Named in this article is $LQDT Liquidity Services Inc. I’ll have to chart them up and place the links at the end of this post. Some of the other players I’ve never heard of, very small exposure, but the deals on “stuff” ranges from women’s $100 coats (now $2.75 new) to TVs, kids toys, lawn furniture, you name it:
WSJ headline: Glut of Goods at Target, Walmart Is a Boon for Liquidators
Off-price chains are awash in appliances, apparel and outdoor furniture that never made it to stores
By Suzanne Kapner | Photographs by Cooper Neill for The Wall Street Journal
July 4, 2022 5:33 am ET
https://archive.ph/9KktT#selection-76.0-74.2
The excess inventory piling up at large retailers such as Target Corp. and Walmart Inc. is proving a boon for liquidators and other companies that help dispose of the oversupply.
Liquidity Services Inc., Xcess Limited, B-Stock LLC and other companies said they are seeing a glut of kitchen appliances, televisions, outdoor furniture and apparel that major chains are trying to clear out. In many cases, the liquidators are picking up pallets at the ports or from a warehouse without the goods ever hitting store shelves and are selling the items to smaller retailers and individuals who resell them online.
“What’s unusual is the large retailers may not ever touch the products,” said JD Daunt, chief commercial officer of Liquidity Services, which operates online marketplaces. “They are asking us to get in front of this earlier than in the past. There is an unusual amount of excess inventory, and it’s affecting so many retailers at the same time.”
More about $LQDT:
https://earningswhispers.com/epsdetails/lqdt
Last earnings for $LQDT was 5 MAY 22 bmo and it was a small beat: +.17 CENTS per share vs. expectations of .16 CENTS. Rev growth of +10.50%
BETHESDA, Md., May 05, 2022 (GLOBE NEWSWIRE) – Liquidity Services (NASDAQ:LQDT; www.liquidityservices.com), a leading global commerce company providing trusted marketplace platforms that power the circular economy, today announced the following financial results as of the second fiscal quarter ended March 31, 2022 as compared to the applicable prior year periods:
Gross Merchandise Volume (GMV) of $276.9 million, up 34%, setting a new record, and Revenue of $68.3 million, up 11%
GAAP Net Income of $12.0 million1, up $6.7 million, and GAAP Diluted EPS of $0.351, up $0.20
Non-GAAP Adjusted EBITDA of $9.2 million, down $0.2 million, and Non-GAAP Adjusted Diluted EPS of $0.17, down $0.03
Cash of $84.3 million, $17.0 million of shares repurchased in the quarter, $48.7 million trailing 12-month operating cash flow, and zero financial debt
Trailing 12-month GMV over $1.0 billion, up 42%, Net Income of $56.7 million1,2, Non-GAAP Adjusted EBITDA of $43.3 million
Also, farmboy take note:
Liquidity Services issued its 2022 ESG Report, detailing its important role in powering the circular economy via its e-commerce platforms to redeploy valuable surplus assets and divert millions of tons of returned goods away from landfills.
Liquidity Services received the 2021 Value in Excellence Award from $ADM (NYSE:ADM). The award program honors company suppliers that deliver superior performance and exceptional value to ADM and its customers.
Liquidity Services’ leadership role in the circular economy was profiled in a feature broadcast by CNBC entitled: “Inside the Company at the Center of the $644 Billion Liquidation Industry.”
https://www.cnbc.com/2022/02/19/liquidation-services-resell-…
Liquidity Services entered into a new credit facility with Wells Fargo Bank that provides revolving loans up to a maximum aggregate principal amount of $25 million with a $10 million sublimit for standby letters of credit.
Charts for $LQDT
Daily chart trading inside a sym triangle which closed above the 20 EMA just last Friday:
Weekly chart tested a horizontal support 8 weeks ago and it held. Grinding upward slowly since then. Just broke out from a down trendline last week, faded on that breakout, but still outside that trendline meaning the breakout is still good
Any bullish move this week might close this baby above the 17 EMA on this weekly chart for a decent 1/3 nibble:
Monthly chart shows promise with the breakout from a down trendline which began last December and had three other monthly confirmation lower lows to form the trendline down. This breakout also shows that the RSI 5 (relative strength index) closed just above the 30% line and that’s another bullish indicator:
Lastly, here’s the bio & website for this company:
Liquidity Services Inc.
6931 Arlington Road, Suite 200
Bethesda, Maryland
https://liquidityservices.com/
Sector: Discretionary
Industry: Broadline Retailers
Employees: 614
DESCRIPTION
https://stockcharts.com/freecharts/symbolsummary.html?sym=LQ…
Liquidity Services, Inc. engages in the provision of e-commerce solutions to manage, value, and sell inventory and equipment for business and government clients. It operates through the following business segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), and Machinio.
The GovDeals segment provides self-directed service solutions that enable local and state government entities including city, county, and state agencies to sell surplus and salvage assets through the firm’s GovDeals marketplace.
The CAG segment offers managed and self-directed service solutions to sellers and consists of marketplaces that enable commercial businesses to sell surplus and idle assets. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales, and marketing.
The RSCG segment consists of marketplaces that enable corporations located in the U.S. and Canada to sell surplus and salvage consumer goods and retail capital assets. Its services also include returns management, asset recovery, and e-commerce services.
The Machinio segment operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors.
The company was founded by William P. Angrick III, Jaime Mateus-Tique and Benjamin Ronald Brown in November 1999 and is headquartered in Bethesda, MD.