Printer-Friendly View

Disclosure for Big 5 Sporting Goods

I, Ian Corydon, certify that this report reflects my personal beliefs about this company and that no portion of my compensation was, is or will be directly or indirectly related to the specific recommendations or views discussed in this report.

• B. Riley & Co., LLC does and seeks to do business with companies covered in its research reports
• A portion of this analyst’s compensation is based on the investment banking activities of B. Riley & Co., LLC.
• B. Riley & Co., LLC makes a market in the securities of the company covered in this report.
• This analyst, or a member of this analyst’s household who is financially dependent on this analyst or vice versa, holds a Long Stock position in the security covered in this report.

Resumed Coverage on 03/04/2008 with "Buy" Rating and Price Target of $13.25

Ratings Distribution as of September 5, 2010				% with Investment Banking Relationships
Rating	Number of Companies	Percent of Total		Rating	Number of Companies	Percent of Total
Buy	82	75.9%		Buy	3	100.0%
Neutral	25	23.1%		Neutral	0	0.0%
Sell	1	0.9%		Sell	0	0.0%
Total	108	100%		Total	3	100%

Explanation of B. Riley & Co. LLC’s Rating System

• Buy: We generally expect "Buy" rated stocks to materially outperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly attractive.
• Neutral: We generally believe "Neutral" rated stocks will perform roughly in line with the S&P 500 and Russell 2000 over the intermediate and long term.
• Sell: We generally expect "Sell" rated stocks to materially underperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly unattractive.

Risks and Considerations

• Discretionary Spending - The products the Company sells are largely discretionary in nature and any slowdown in consumer spending would have an unfavorable impact on the Company.
• Labor - The Company has a large number of full-time employees and is party to several collective bargaining agreements that cover some of these employees. Additionally, the Company is facing rising labor costs.
• Regional Focus - The Company's operations are clustered in one part of the United States. Thus, its earnings are more vulnerable to any regional economic shock and/or slowdown.
• Weather - The weather can significantly impact the Company's results.
• General Industry - The Company could miss our estimates and/or their financial guidance.
• See the Company's SEC filings, particularly its 10-K filing, for a discussion of further potential risks.