Delta Apparel, Inc. (DLA)
The Company is a marketer, manufacturer and distributor of private label activewear apparel.
Recs
5yr avg ROE is 13.02, compared to 25.28 in the apparel industry, according to reuters. Operating margin 8.79, compared
to 16.84. This might be related to the fact that they didn´t used to sell a differentiated line of products. When you fall
into the basic goods category, price is what makes customers decide for one or the other. Fun Tees purchase could help them improve margins. I hope they are fun enough
Recs
Delta Apparel Inc. sells branded and private label apparel.....many of you are saying...AND?!
Well the AND is, they are a company with a simple business model, with a fat slice of inside ownership, with a pretty little dividend, AND some very shareholder friendly management.
Delta is in a business that's in an evergrowing market. These types of clothing styles are becoming more and more popular as this new generation moves toward the more casual, comfortable, look and feel of the clothes Delta has to offer.
I don't think this company is a one trick pony. I look for it to offer up some market smashing returns for at least a couple of decades.
So Go Long,
Fool On!!!
Recs
A good company at a good price of $16.40
Recs
5-star $157 million market cap on 11/24/06
Active wear.
5STARsmallCAPS picks five star stocks with the smallest market caps.
Recs
Has a long history of steady earning and steady sales growth.
Recs
There may be a volatile 6 months that lie ahead for this textile company. A $20M acquisition may drag down earnings for the next couple quarters. The current price is with 4% of it's all time high and may float down to the $17 range before it continues it's steady upward trend. Another split may be likely in 2007. Stock buybacks are happening as fast as the regulations will allow. I see $30 a share late 2007.

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