Countering Greenberg's Report on Hanesbrands

Last week, Herb Greenberg's new firm Greenberg Meritz wrote <!---->cautionary words about Hanesbrands (HBI),
which is the top holding in my portfolio. The following morning, Credit
Suisse reiterated that the stock was a favorite idea in the market.
Hanesbrands is the top holding within my portfolio and is my favorite
stock within the consumer sector (although as I have mentioned on other
occasions I continue to like stocks which are benefiting from the
trade down effect while avoiding those who are prone to it).

Greenberg
Meritz in their report questioned Hanesbrands' sales growth which they
termed uninspiring along with the quality of earnings and economic
headwinds that the company is facing. They also mention that Hanes
continues to be involved in a restructuring (due to their spinoff from
Sara Lee a couple of years ago) and that the balance sheet and operating cash flows are deteriorating at fast rates while the
company faces increasing costs and intensifying competition. I thought
I would address each of these points individually.