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Guru strategies pick retailers: Gildan Activewear (GIL) and Jos. A. Bank Clothiers (JOSB)

March 13, 2009 | About:
Street Authority

The Stock Advisors

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In his Validea newsletter, John Reese uses a fascinating approach to stock selection; he assesses companies based on the investment strategies of "legendary investors" such as Ben Graham and Warren Buffett.

Recently, the advisor has highlighted two retailers that pass his guru screens: Gildan Activewear (GIL) and Jos. A. Bank Clothiers (NASDAQ: JOSB). Here's his contrarian look at the two out-of-favor firms.

"You might never have heard Gildan Activewear, a Montreal-based clothing manufacturer, but you may well have worn its products.

"Gildan sells T-shirts, sport shirts and fleece to wholesale distributors as 'blanks' -- that is, without logos or decorating. Screen printers then decorate the items with various designs and logos.

"The final products are sold at sporting, entertainment, and corporate events and travel and tourism destinations, and are also used as work uniforms.

"Gildan, which also is a major supplier of socks, has a major presence in the U.S., Canada, and Europe, and has been growing in Mexico and the Asia-Pacific region. It employs more than 20,000 people around the globe, and has a market cap of $878 million. 

"Gildan gets approval from three of my Guru Strategies -- those I base on the writings of Peter Lynch, Benjamin Graham, and Kenneth Fisher.

"Jos. A. Bank Clothiers, based in Hampstead, Maryland, has seen its price come down over the past couple weeks, and my models think it's time to bring it back into the fold.

"The 100-plus-year-old retailer sells a variety of men's tailored, casual, and sports clothing, as well as shoes and accessories such as hats and belts.

"The small-cap ($450 million market cap), has about 450 stores in 42 states and the District of Columbia, and has taken in more than $650 million in sales in the past 12 months.

"Bank is one of the rare stocks that gets approval from four of my Guru Strategies. My Peter Lynch-, Benjamin Graham-, James O'Shaughnessy-, and Kenneth Fisher-based models are all very high on the stock."

The Stock Advisors
www.thestockadvisors.com

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Rating: 2.0/5 (5 votes)

Comments

munger
Munger - 4 years ago
What is so fascinating about his stock selection approach? Anyone can build a value screener.

And just a tip, you can't enter Buffet's investment acumen into a stock screener.

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