Gildan Activewear (Symbol-GIL)

Discuss your favourite picks, broker, and trading or investment style.
Post Reply
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

Continuing from http://www.financialwisdomforum.org/for ... 06#p438406 it appears it would be appropriate to open a Topic on Gildan.
deaddog wrote:
scomac wrote:
deaddog wrote: What do you like about the balance sheet?
A quick look shows GIL has the same red flags as CTUa.
Please expand.
Red Flag is the increase in inventory. Most of it finished product. They are either planning for a stellar upcoming season or, more than likely, have a bunch of stuff that didn’t move last year. Not a good thing in the fashion industry.
From Gildan Activewear Reports Record Results for Third Fiscal Quarter and Updates Full Year Fiscal 2011 Guidance
Gildan wrote:The Company plans to continue to run all of its manufacturing facilities at full production capacity during the fourth quarter, in spite of the uncertain economic environment, in order to rebuild inventories to optimal levels and to position the Company to take advantage of any improvement in market conditions and pursue its growth initiatives in fiscal 2012.
I'm not sure that I'd put Gildan in "the fashion industry". They make T-shirts, fleece, sports shirts and socks. Meat and pototoes stuff that doesn't go "out of fashion", as they are never "in fashion" IMHO.

deaddog does make a good point that it is probably worthwhile to watch the inventory numbers over the next few quarters to ensure that they don't build out too much inventory, particularly given the uncertain economic environment.
Last edited by Peculiar_Investor on 07 Feb 2014 07:04, edited 1 time in total.
Reason: replace old domain name with www.financialwisdomforum.org to reflect new domain name effective 19-Jan-2014
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
deaddog
Veteran Contributor
Veteran Contributor
Posts: 3422
Joined: 19 Jan 2008 19:59
Location: Central BC/Arizona

Re: Gildan Activewear (Symbol-GIL)

Post by deaddog »

Took a more detailed look at the Quarterly report and the numbers don’t look that bad.

The concern about increase in inventory might be related to the acquisition of Gold Toe Moretz. This probably also explains the decrease in cash and increase in Intangible assets, goodwill and long-term debt.

The acquisition also makes it hard to compare revenues and earnings quarter to quarter. I’m just looking at the % difference between the quarters.

There is still a small concern that bears watching. Sales increased 34% compared to Inventories that increased 60%.

I’d consider this company to be on sale. But the markdown might continue so I’d only nibble at it at this time.
"And the days that I keep my gratitude higher than my expectations, well, I have really good days" RW Hubbard
FinEcon
Veteran Contributor
Veteran Contributor
Posts: 1306
Joined: 03 Aug 2005 13:41

Re: Gildan Activewear (Symbol-GIL)

Post by FinEcon »

deaddog wrote:
scomac wrote:
deaddog wrote: What do you like about the balance sheet?
A quick look shows GIL has the same red flags as CTUa.
Please expand.
Red Flag is the increase in inventory. Most of it finished product. They are either planning for a stellar upcoming season or, more than likely, have a bunch of stuff that didn’t move last year. Not a good thing in the fashion industry.
OK, so this thread is going to look buggered up because my quote is from another thread, which PI split into this one. Apologies if this makes either of you feel taken out of context.

They both have issues but they are not the same issues, GIL is in much stronger financial shape, has fewer substitutes and a much more diversified customer base. Personally, I think you have to get something like GIL at 6-8x over some longer interval's normalized earnings. And not to mention the premium of current market price to book value. There's no chance I'm looking to pay up to anywhere near that extent for a commodity product firm with only a logistical & operational moat. It's not that an investor won't do well with with an investment at or around current prices, but the margin of safety I require is not there yet.

An acquisition always muddies up the analysis and at this point in time I know exactly zero about GIL's latest and that may have something to do with inventory run up. However, in my view, AR > sales in the most recent quarter is not a big issue because Gildan is not a fashion company so what you correctly refer to as finished product does not really capture the whole picture. Only a portion of Gildan's business (the corporate stuff) is a final product, much of what they sell is a stock product, i.e it is something another firm uses as an input. That inventory is so basic and bland you can almost treat it like a stock of a commodity. The good news is that it doesn't decay in the sense of shelf ready apparel. There is one more thing worth noting, 2 customers account (and have for some time) for approximately 1/3 of their sales. Again, the recent acquisition may change that somewhat.

EDIT: above where I mention AR & sales should be taken to mean the 'relative % changes in each of the two variables, with respect to one another, quarter over quarter'. As deaddog pointed out, recently, AR is increasing faster than sales in percentage terms.
Last edited by FinEcon on 21 Aug 2011 22:32, edited 1 time in total.
Show me the incentive and I will show you the outcome

--Charlie Munger
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

FinEcon and deaddog, thanks for taking the time to review and reply with well thought out responses. They give me another angle to examine my rationale for purchase. It also confirms why we have a stock market, multiple people having different criteria and viewpoints on companies and their business.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
Lazy Ninja
Contributor
Contributor
Posts: 648
Joined: 03 Mar 2008 19:10

Re: Gildan Activewear (Symbol-GIL)

Post by Lazy Ninja »

I've been taking a closer look at this one lately and I couldn't help notice that this company essentially doesn't pay taxes. In the past five years Gildan has net income of over 1.25 billion dollars, and a total provision for income taxes over that span of negative four million dollars, for an annual effective tax rate of minus 0.3%. Seems like good work if you can get it. While I'm not sure how many FWF members own this one, I'm curious if the general consensus is that this company is never going to have to pay any meaningful amount of income tax. Here are a few links that a google search on Gildan tax rate turned up:

http://www.canadianbusiness.com/compani ... ear-taxes/

http://globalnews.ca/news/982440/tax-do ... ctivewear/

http://www.advisor.ca/tax/tax-news/tax- ... ire-169872


A snippet from the last link:
While the friendly arrangements enable Canada to crack down on tax-haven cheats and encourage international business expansion, it seems some large loopholes exist as an unintended consequence. For now, there’s no indication that anything will change in the short term, and Gildan investors can probably rest easy.
Is this a concern for anyone?
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

Gildan to buy some assets as American Apparel files for bankruptcy protection -- American Apparel files for second bankruptcy in just over a year | Reuters
Reuters wrote:Canadian apparel maker Gildan Activewear Inc said it agreed to buy intellectual property rights related to the American Apparel brand and certain assets from American Apparel for about $66 million in cash.

Gildan will not be purchasing any retail store assets, it said in a statement.

The bankruptcy filing allows American Apparel to hold an auction for its assets and business under which Gildan's proposed acquisition would constitute the initial bid.

"Gildan has asked for the opportunity to maintain certain of our manufacturing, distribution and warehouse operations in and around Los Angeles," American Apparel Chairman Bradley Scher said in a letter to employees, a copy of which was obtained by Reuters.
It's too early to tell whether a) this purchase is final and b) how it impacts Gildan's financials going forward.

Gildan's management have proven themselves as skilled, low-cost operators, so if they succeed this would seem to fit into their modus operandi.

Added: I found Gildan's press release, Gildan Activewear Announces Proposed Acquisition of American Apparel Brand
The closing of the transaction is subject to approvals by the American Apparel bankruptcy process and customary conditions, and is expected to occur during the first quarter of 2017.

The American Apparel® brand is a highly recognized brand among consumers and within the North American printwear channel. The American Apparel® brand would represent a strong complementary addition to the Company's portfolio of brands. The acquisition will create revenue growth opportunities by leveraging Gildan's extensive distribution network in North American and international printwear markets to further increase the brand's penetration in the faster growing fashion basics segments of these markets. In addition, with American Apparel®'s strong heritage as a consumer brand, the Company will evaluate potential wholesale opportunities for leveraging the brand within its Branded Apparel business.

American Apparel voluntarily filed for Chapter 11 bankruptcy protection on November 14, 2016. The Bankruptcy Court may require American Apparel to hold an auction for its assets and business under which the proposed acquisition would constitute the initial bid. Consummation of the acquisition would be subject to Gildan being selected as the successful bidder in any such auction and Bankruptcy Court approval. Gildan will be entitled to a break-up fee and certain expense reimbursements if it does not prevail as the successful bidder at any such auction.
I've bolded my three main takeaways from their press release. Expected to close in Q1 2017, provides revenue growth and they've got a break-up fee if they don't prevail in the auction.

Gildan has been a long-term hold in our portfolio and we've done well with it.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

The deal has been concluded, although the price paid has risen from $66 million to $88 million.

Gildan Activewear Wins Auction in Bankruptcy Process to acquire American Apparel Brand
As announced on November 14, 2016, Gildan entered into an asset purchase agreement with American Apparel that served as the initial bid in a Bankruptcy Court-supervised auction. American Apparel voluntarily filed for Chapter 11 bankruptcy protection on the same day. The Company's final cash bid of approximately $88 million includes the acquisition of the worldwide intellectual property rights related to the American Apparel® brand and certain manufacturing equipment. The Company will also separately purchase inventory from American Apparel to ensure a seamless supply of goods to the printwear channel while the Company integrates the brand within its Printwear business. Consistent with the terms of the original agreement, Gildan will not be purchasing any retail store assets.

<snip>

The Company will provide details on the projected financial contribution of the acquisition on the Company's earnings in February, when it reports its full year 2016 earnings results and initiates guidance for 2017.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
Hammerer
Contributor
Contributor
Posts: 628
Joined: 21 Oct 2008 00:09

Re: Gildan Activewear (Symbol-GIL)

Post by Hammerer »

the price paid has risen from $66 million to $88 million.
CAD$ vs US$ ?
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

Hammerer wrote:
the price paid has risen from $66 million to $88 million.
CAD$ vs US$ ?
Good question. The press release doesn't mention which currency, which seems a bit sloppy. SInce American Apparel is an American company and Gildan reports in USD, I'd guess USD$88 million.

FWIW, I just checked their 2016 Third Quarter Shareholder Report and they indicated as of October 2, 2016 Cash and cash equivalents of USD 60.4 so it seems they'll be financing at least part of the purchase.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
Hammerer
Contributor
Contributor
Posts: 628
Joined: 21 Oct 2008 00:09

Re: Gildan Activewear (Symbol-GIL)

Post by Hammerer »

Looks like it is US$88m:

"Gildan Activewear has won an auction to buy bankrupt clothing company American Apparel for US$88 million, some US$22 million more than a stalking horse offer it made in November."

http://www.macleans.ca/economy/business ... 8-million/

I guess at least one other org was interested in the guts.
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

Hammerer wrote:I guess at least one other org was interested in the guts.
That's interesting because the link I posted and the quote comes from Gildan's own press release.

The original source for your link is actually Canadian Press, so they either fact-checked or made an educated guess. The G&M (same Canadian Press story) and Financial Post (using a Reuters article) both state US$88 million. As I said, seems like a sloppy press release from Gildan to not mention that dollar figures are USD.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
jay
Contributor
Contributor
Posts: 547
Joined: 19 Feb 2008 21:13

Re: Gildan Activewear (Symbol-GIL)

Post by jay »

What is with the 6% drop this morning?
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

No idea. They did announce the date of their Q4 earnings release (2/23) but there's nothing of substance in the announcement. The only other financial article that I could find via Google was The Gildan Activewear, Inc. (GIL) Upgraded by Zacks Investment Research to Hold - DailyQuint
Zacks Investment Research upgraded shares of Gildan Activewear, Inc. (NYSE:GIL) (TSE:GIL) from a sell rating to a hold rating in a research note issued to investors on Wednesday.
That hardly seems worthy of any sort of move. BTW, who said analysts never have a sell rating on a stock, we just found at least a sample size of one? :lol:
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
jay
Contributor
Contributor
Posts: 547
Joined: 19 Feb 2008 21:13

Re: Gildan Activewear (Symbol-GIL)

Post by jay »

ya couldn't find anything either.

It just popped on my screen of TSX60 stocks making new or trading near 52-wk lows. Good P/E and EPS growth, but high P/B. Anyways, it seems relatively cheap at these levels and thinking of starting a position. Do you own Peculiar_Investor?
jeremy
Contributor
Contributor
Posts: 421
Joined: 18 Nov 2010 13:53

Re: Gildan Activewear (Symbol-GIL)

Post by jeremy »

Hanesbrands reported below-consensus results yesterday and is down ~15% today. TD put out a report today indicating that GIL may be affected by the same trends.
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

Taken out to the woodshed and being punished because Gildan Activewear Announces Preliminary Third Quarter 2019 Results and Updates 2019 Full Year Guidance NYSE:GIL, down about 30% this morning as I type this.

Is this an opportunity or a warning? I don't have a clue but will continue to hold as a long-term buy and hold investor, the management team is solid and the business is generally solid, with the occasional quarterly hiccups along the way.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

This seems to come out of left field, Gildan Activewear Announces Leadership Changes - Vince Tyra
Gildan wrote:Gildan Activewear Inc. (GIL: TSX and NYSE) (“Gildan” or “the Company”) today announced that Glenn J. Chamandy has left his position as President and Chief Executive Officer and director of the Company. Vince Tyra has been appointed President and CEO effective February 12, 2024. Craig A. Leavitt, a director of the Company since 2018, will serve as Interim President and Chief Executive Officer until Mr. Tyra assumes his new position.
Coverage in Gildan Activewear replaces CEO in sudden shakeup - The Globe and Mail.
Globe and Mail wrote:replacing long-time chief executive and co-founder Glenn Chamandy after 20 years at the helm.
As a shareholder this sudden change in senior management is a significant concern. Generally the departure of long-time CEOs is well telegraphed in advance. In this case he was also the co-founder.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

The other T-shirt shoe has dropped. STATEMENT BY GLENN J. CHAMANDY FOLLOWING FOUR DECADES OF SERVICE TO GILDAN ACTIVEWEAR
Glenn J. Chamandy wrote:Yesterday, I received notice from the Chairman of Gildan Activewear's Board of Directors that the Company was terminating my employment agreement without cause. It is unfortunate that my vision of the path forward has differed from that of other Board members.

This comes after 40 years of service in the impressively successful company founded by my family.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

The Globe and Mail article has been updated with more details
The Globe and Mail wrote:Sabahat Khan, an analyst at RBC Capital Markets, said in a research note that he had a chance to speak with Mr. Berg, Mr. Tyra and Gildan’s finance chief, Rhodri Harries, Monday morning. He said they told him that the the board has been focused on succession planning for some time and that it considered both internal and external candidates for the role of CEO.

The driver behind today’s announcement was “somewhat of a disagreement with Mr. Chamandy on the timing of the transition,” Mr. Khan wrote in the note. The senior executives told the analyst the transition isn’t related to any financial concerns and that the company continues to make progress towards its plans for this year and next.
Since the board and the ex-CEO seem to disagree I'm taking this information with a large grain of salt while I evaluate what, if any, this has on my investment thesis for this company.

One of my main investment criteria for individual stock holdings is stable, shareholder friendly, management teams that I feel can be trusted to act on my behalf.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

Lots of noise this week from institutional shareholders such as Jarislowsky Fraser seeking to reinstate the ex-CEO and co-founder Glenn Chamandy. It does sound quite messy how this boardroom drama played out.

From this shareholder's point of view that is definitely a negative and cause for concern.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

Are there any other FWF'ers that hold shares in Gildan?

Getting more interesting ... Browning West seeks Chamandy's return to Gildan, prepared to call shareholder meeting - BNN Bloomberg and now Gildan activists turn up heat on board for shareholder vote - BNN Bloomberg
BNN Bloomberg wrote:Canadian investment firm Turtle Creek Asset Management Inc. is backing another shareholder’s push to change the board of Gildan Activewear Inc., saying the company needs a “swift resolution” to the battle over who should be CEO.

Turtle Creek, one of Gildan’s largest investors, plans to vote for a slate of five new directors proposed last week by Los Angeles-based money manager Browning West LP.

The two firms, along with several others including Jarislowsky Fraser Ltd., are angry that the Gildan board sacked longtime Chief Executive Officer Glenn Chamandy in December. Browning West says it plans to force a shareholder meeting to vote on a new board.

“The board’s reckless and ill-conceived termination of CEO Glenn Chamandy alienated long-time shareholders and exposed Gildan to significant risks including a loss of essential leadership, damaged employee morale, and threatened key customer relationships,” Turtle Creek said in a statement Thursday.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
Jo Anne
Veteran Contributor
Veteran Contributor
Posts: 3648
Joined: 19 Feb 2005 21:33

Re: Gildan Activewear (Symbol-GIL)

Post by Jo Anne »

I have shares in Gildan. Only 100. No plans to sell them just yet.
peter
Contributor
Contributor
Posts: 662
Joined: 10 Oct 2005 21:37
Location: Alberta

Re: Gildan Activewear (Symbol-GIL)

Post by peter »

I have shares from years ago, with a 350% capital gain in a non-registered account, also almost all (gain) from years ago. My standard-size non-registered positions have become bigger over time and this one is below my current standard (so material for me but not particularly large within my entire portfolio). I'm following this thread and the stories in the G&M but not inclined to act.
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

This is getting quite contentious between the board, the ex-CEO and various shareholder groups.

The next shoe, Gildan pushes up start date for new CEO in move likely to spark further criticism - The Globe and Mail
The Globe and Mail wrote:Canadian apparel maker Gildan Activewear Inc. is moving up the start date of its new chief executive officer, a move sure to draw the ire of investors who want him gone and the former CEO reinstated.

Montreal-based Gildan (GIL-T), whose board is locked in a clash with several major shareholders over the surprise dismissal of long-time CEO Glenn Chamandy in December, said Friday that new CEO Vince Tyra will start on Monday Jan. 15. That’s roughly a month before he was previously slated to begin.

“At the board’s request, Mr. Tyra has made himself available to move the start date from February 12 to respond to requests to engage early with key stakeholders and bring needed stability and leadership to the company,” Gildan said in a news release.
See the attached PDF for the current state of my analysis. I am sitting on a significant capital gain which weights into the determination of whether or not this significant management change is cause to sell. A committed and shareholder friendly management team (C-suite and Board of Directions) is an essential part of my investment thesis for most companies.

To understand further take a look at the topic Stock study techniques ... thanks Mike for information on the methodology that I use when analyzing stocks.
Attachments
Toolkit 6 - GIL.pdf
(243.37 KiB) Downloaded 11 times
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Gildan Activewear (Symbol-GIL)

Post by Peculiar_Investor »

Another twist to the story ...

Gildan Activewear’s board puts clothing manufacturer up for sale amid prolonged battle for control of company - The Globe and Mail
Globe and Mail wrote:“In response to the receipt of a confidential non-binding expression of interest to acquire Gildan, Gildan’s Board formed a Special Committee of independent directors to, among other things, review and consider the merits of the proposal and any alternative transaction, including maintaining the status quo and continuing to execute on Gildan’s existing business plan,” said a statement by Simon Beauchemin, a Gildan spokesperson.

“After consulting with its legal and financial advisers and considering the interests of Gildan’s shareholders and other stakeholders, the Special Committee determined that it was consistent with its fiduciary duties and in the best interests of Gildan to contact other potential bidders with a view to maximizing the value of any potential transaction. The Special Committee, with the assistance of its financial advisers, conducted targeted outreach to a small number of reputable potential counterparties. Several of these counterparties expressed an interest in considering a potential friendly transaction with Gildan,” the statement said.

“There can be no assurance any transaction will result from these discussions, and Gildan will continue to provide updates as appropriate,” he said.
Stock price popped nicely on this news. Up 10.8% as I post this.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
Post Reply