BT Group (BT/A LN): hello from the other side..

btI think BT can offer good value in this low yield environment, awarding patient shareholders with a 3.4% dividend. Recent broker research, shows the Openereach spin off remains an uncertainty but is less likely, given the technical difficulty in deviding pension liability and assets between BT ‘core’ and Openreach. I can imagine there would be many employees with careers in both divisions, that could pose an obstacle in allocating pension contributions and liabilities between BT and Openreach. Some interesting equity research reports from respectable sources (available here for your eyes only ) show: a) dividend remains well-covered, b) BT defends well its own market share, c) no immediate threat from Ofcom.

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The bear case for Hanesbrands (HBI US)

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Hanesbrands makes underwear and the alike (shocks, fleeces, sweats, thermals) under the brands: Champion, Hanes, Maidenform, Playtex, L’eggs and Just My Size.
Most of the brands it controls came after acquisitions and to fund them it has raised USD 3.3b in debt (quite high at x3 current EBITDA).

The bull case is that underwear / innerwear have little fashion risk and Hanesbrands has a big market share in the US (management says 4 in 5 Americans purchased something from them)

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