The daily and weekly charts of Unifi, respectively below, pretty much speak for themselves in terms of relative and absolute strength.
So, I will pose this question as an open forum of sorts overnight, and ask what the polyester/nylon maker has going for it in a macro sense. Are there ramifications to anything going on in the cotton or even oil markets? Or other markets?
Feel free to chime in below.
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Free cash flow.
UFI has established long term contracts (standard practice in its industry), a low, and, compared with a couple of years ago, substantially lower debt burden. Its shareholders are going to challenge management to start paying dividends, or the company will be on the block as an attractive tidbit for anyone looking for positive cash flow.
Commodity, shipping, labor and other input prices aren’t damaging to the company’s prospects – while the uncertain interest rate environment and strong USD are big positives.
More could be said, but it’s all about free cash flow.
Anticipation of Bankrupt competition?
Demand coming in from places like GPS,ANF
If you want to really see synergy of Unifi with another similar company, look at Invista. http://www.invista.com/en/index.html These guys are much bigger and so similar to Unifi. I don’t understand why they don’t make a run at Unifi.
thanks!