Hbi- hanesbrand Inc as a value pick

Do you have Market Smith to do some analysis?

It's the lowest it's been all year, but with such a strong downward trend it may continue.

Have you researched the company and are ready to start building a position?

They have quarterly conference calls you could sit in on. Or find a recording of the previous conference call when you are ready to buy.

Don't buy the whole position at once. (If you're going to put $1k in, buy 25% and then another 25% as it goes down, continue to do this over a few months time or even a year.)

Know when they report. Pay attention to the direction of the stock during the report and take advantage of the direction. Buy the dips, sell the spikes.

quote:

---

It's the lowest it's been all year, but with such a strong downward trend it may continue.

---

Would be buying and holding for at least 3 to 5 years.

quote:

---

Do you have Market Smith to do some analysis?

---

I don't but am interested I have just been getting a feel for it from Forbes and wall Street journal discussions as well as Edgar.

quote:

---

They have quarterly conference calls you could sit in on. Or find a recording of the previous conference call when you are ready to buy.

---

I'm going to look into this some more. Conference calls seem crucial from my reading.

quote:

---

Don't buy the whole position at once. (If you're going to put $1k in, buy 25% and then another 25% as it goes down, continue to do this over a few months time or even a year.)

---

I'm just testing my analysis at the moment so all small buys through robinhood.

It's a stock I've been following for a while.

Most valuation metrics show it as a favorable buy and the downward trend seems to be a irrational reaction to the retail industry.

The company has a good stable cash flow in a very fragmented industry. Management seems focused on growing via mergers and acquisitions based on recent trends... so it is leveraged a good bit (debt/EBITDA).

The questions you need to look are:

1. Is HBI transitioning itself to produce more sales online than in retail stores?

2. Are Fruit of the Loom and Gildan destabilizing margins?

Overall there seems to be more upside than downside risk, but there may be better buying opportunities before the current trend reverses itself.