HBI (Hanes). Imo, yes, a good value at current price. Otoh, I believed the same when I bought at higher prices --- and before the quarterly report of their earnings miss and the stock's resulting cratering. The stock might be up somewhat from recent lows by buys by insiders who maybe were aware of the positive Hanes article that was to be published by Barron's. (Article was published 4/15.) I am holding my shares, looking to add more if stock will drop back down.
I gather from that Barron's article:
positives:
HBI stock is relatively inexpensive compared to peers (Postive for some, but I'm not one to consider it so positive it that it makes the stock attractive or a buy.)
Assortment of brands, many of which, "like Hanes in underwear and socks and Maidenform in bras, are either No. 1 or No. 2 in their category".
People are still wearing underwear. Mr. Buffett likes the business (at a price), given he bought Fruit of the Loom.
Dividend.
negatives:
Growth by acquisitions funded by debt. Very large (too large) debt to ebita.
Earnings miss. Lowered guidance.
Cash flow miss.
High dollar, rising cotton prices, internet threat to retailers. |
