Below is a brief note from CEO Keith McCullough on why we're adding Gildan Activewear (GIL) to the long side of Investing Ideas today:
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Rather than chasing alongside the crowd on green, here's a stock I've been waiting and watching on that you can buy on red today. Gildan Activewear (GIL) is a name that Brian McGough's Retail/Apparel team recently added to their Best Ideas (Institutional product) list. Here's an excerpt that summarizes the dynamism within GIL's current margin structure: "GIL has recently invested in new capacity that has temporarily lowered RNOA, and is beginning to backfill demand in both its screen printing business (where it has 70% share of t-shirts, for example), as well as in its branded business in US mass channels (displacing HBI along the way). That accelerates growth, lifts margins, and leverages fixed assets." |
