Gildan Activewear - Price Targets

G Gildan Activewear ( GIL on the NYSE and Toronto)
Sterne Agee Group has raised its target price to $40
Desjardins Securities has a $43 target.
The Company is a manufacturer of t- shirts and recently has expanded into socks with the purchase of two U.S. based manufacturers. This allows Gildan increased distribution for its products - socks, underwear, tees ,sweatshirts and a major push into private labels. It will now be one of the largest suppliers to Target and Wal-Mart through the recent purchases. Gildan management has shown itself adept at meeting and beating Asian and other low cost competition. The continues expansion meets its stated desire to become a major force in retail distribution of a full range of products. They are the low cost producer and have , in the past moved high price production off shore to maintain their prices and their customers. The integration of the newly acquired manufacturers should produce cost savings for Gildan.

Earnings per share
2006 Actual $1.03
2007 Estimate $1.28
2008 Estimate $1.89
2009 Estimate $2.26

Price Earnings Ratio
2006 Actual 30.7
2008 Estimate 24.7

taken from the article at http://www.amprogram.com Sept 26

War with Iran

The weekend paper carried a story that had advances on the tensions over Irans' nuclear program:
1 ) Condoleezza Rice apparently has made "peace " with the Vice- President .
Cheney is leading the hawks in the planning and rhetoric. This was an effort to paper over divisions in the white House.
2) Mondays headline in the National Post quotes the French Foreign minister : " Prepare for War With Iran " The story also says France is advising Total and others not to bid on contracts in Iran
3) U.N. will be meeting to press more severe restrictions on Iran The effect on oil will be to keep the political pressure on high prices. If the U.N. agrees to oil sale restrictions against Iran prices will rocket past $100 and if there is a shooting war to destroy Iran’s nuclear facilities ????????

from http://www.amprogram.com Sept 18

Baidu

. Baidu .com - The Chinese version of Google RBC sees favorable trends and a target of $333 a potential 40 % plus gain
Three Year projected earnings per share growth 83% Key Points in the RBC Review 3rd Quarter 2007 tracking well in ad growth 60 % of the Chinese search market -
Leverage from low cost labor Travel and education segments are growing Each month is stronger sequentially than the prior month
Employment level is 5000 and rising - shows management confidence - 70% are in sales and customer service
Revenue 2006 A 105.7 MM 2007 E 231.4 2208 E 436.2 rising to 687 in 2009
Earnings per share ( OP) 2006 A 1.26 P/E NM 2007 E 2.14 P/E NM 2008 E 4.91 P/E 47.8 dropping to 30.1 in 2009
Rating : Outperform