Gildan Activewear

TSE: GIL
Gildan Activewear is a Canadian clothing manufacturer that has seen declining share prices for a few months. This may be a result of association with retail, which has had explainable declines due to disappointing holiday sales from many brick-and-mortar retailers. The decline can also be attributed to the potential new competition in its bid to acquire American Apparel assets from Amazon and Forever 21. With fears that a higher bid from these companies would put Gildan's strategic acquisition in jeopardy, I think that the fundamental business of making basic clothes is being forgotten. Whether or not Gildan acquires American Apparel, it has been growing revenue steadily for the past few years while keeping a low debt-equity ratio. Growth has slowed down, but capital spending has increased in recent quarters, with a recent acquisition of Peds Legwear, a hosiery company, falling in line with the "basics" clothing Gildan sells. This business is extremely stable compared to a typical retailer that depends on current fashion trends and styles. Geographically, Gildan sells clothing across Canada, the US and in Latin America, providing regional diversification and a potential for increasing growth in Latin America. At a closing price of $34.00 per share, you get a stable Canadian clothing company with potential for growth and an increasing (albeit mediocre) dividend of 1.16%, which has been paid out since 2011.
Disclosure: I currently own GIL.