The latest results mentions that HBI will be removing 310 employees. In my opinion what is NOT mentioned is how many contractors it is hiring. And IMO that figure may be more than 600. That is the main reason why after all the lay off's HBI's expenses is not coming down.
For those who have any doubts, should check that there is only one company in Winston Salem, which is hiring employees in this troubled times. The above company IMO has a contract with HBI and as HBI removes employees, the entire contract goes to that company at a huge premium. And all their employees do just one thing; sit in the cafeteria at HBI.
There are lots in Kerala, India who have not worked at all and in my opinion are just on paper.
Still IMO HBI outsourcing manager seems to be under enormous pressure (surprisingly not from the HBI management, but from this contracting company) to extend their contracts.
This company I believe and IMO is being paid $60 an hour for their employees in US, and $25 an hour for their employees in India. The prices have gone down substantially within the past 2 years however this company keeps on getting paid at the same old rates. (and all these employees work for 40 hours a week)
The IT management IMO recently removed lots of contractors from another NY listed reputed Indian company, however could not do anything to this unlisted company. The management is sincerely trying, IMO however under some serious pressure surprisingly from one contracting company.
This in my opinion, is the reason for HBI's failed efforts to cut costs.
If the management really cares for its shareholders and is willing to reward its investors, it should place efforts in cleaning up its internal deficiencies.
I strongly believe that once this is cleaned up, HBI has huge growth potential, and all genuine shareholders like us will enormously benefit from the appreciation of the stock price.
Till that time, comments from people bashing at me and talking about $40 price for HBI should be read with caution. Their language itself shows their caliber, so I do not reply to anyone of them, nor will write anything more on this board in near future.
Investors should take a balanced decision investigating about facts.
And the fact still remains the same; despite what people write on this board, HBI stock goes down. And the reasons are very obvious, whether they believe it, or bash at me.
All in my opinion of course !.
I wish all investors, good luck and do believe that HBI is a short term buy (Till $15 or 1st of March whichever earlier).
Softpro,I hope you reconsider about not posting on this board.You are our only true source of information on the inside works of hbi.The bashers are probley hbi management that needs to be changed fast.I'm getting out of this stock as soon as it jumps,first week of March?