Topic: How To Invest

Q: Can I have your opinion on Gildan Activewear? Do you think it would make a good investment? Thanks

Article Excerpt

A: Gildan Activewear Inc., $32.45, symbol GIL on Toronto (Shares outstanding: 231.8 million; Market cap: $7.5 billion; www.gildan.com), manufactures and distributes basic family apparel, including T-shirts, fleece pullovers, sports shirts, underwear and socks. It sells them both under its own name and under licenses with companies such as New Balance and Under Armour. In June 2016, Gildan expanded its printwear business with the $110 million acquisition of Alstyle Apparel. That operation manufactures and markets activewear such as T-shirts and fleece. It then sells to screenprinters, embellishers and mass-marketers, largely in the U.S. as well as Canada and Mexico. Alstyle’s manufacturing operations include a large-scale textile manufacturing plant and cut-and-sew facilities in Mexico. Its distribution centers are located in the U.S., Canada, and Mexico. The Alstyle acquisition immediately expands Gildan’s share of printwear markets in the U.S., Canada and Mexico; it also broadens and complements the company’s operations in the western U.S. where Alstyle has a strong presence. In addition, Alstyle’s manufacturing facilities…