Quick Note: Hanes
I wrote about Hanes Brands (HBI) on Monday. If you didn’t read that post, click here.
The company reported its earnings and the stock is up $3.85 (or a little over 14%) as I write this. Obviously, the share price ($30.50) will be out of date by the time you read this – most likely there will be a lot of shares changing hands today.
I didn’t “call” this one. I just liked the stock long-term, because as I wrote on Monday:
This is a good business with a lot of debt and a lot of temporary, transitional stuff obscuring the company’s true earnings power.
That point was made clear today. The headlines weren’t nearly as positive sounding as those that typically herald a double-digit percentage gain: “Hanes Brands Profit Tumbles 57 Percent“.
I would have gone with “Hanes: Profit Falls; Stock Rises“.