Black Friday Gets All Orgasmic

Admit it, the initial reads on the holiday season have you all excited about retail stocks. Perhaps a pen and paper is sitting at your side with names ready to be checked off as “owned” in the portfolio. To that, all I can say is to hold your horses cowboy, don't get sucked into the orgasmic post Black Friday euphoria brought about by findings from countless surveys. While it's great the season didn't start as a dud, there is still reason to be like a surgeon in the retail sector, primarily when considering not all companies won and promos drove sales. Full priced sales environment is so 2007. What I suggest today is to scour the sector for derivative plays, companies that have stocks in the doldrums jump to the top of my list. One name in mind is HanesBrands. The company's valuation interests me as Wal-Mart, its largest customers at 26% of total annual revenue, sold a ton of basic apparel on Black Friday and the weekend. I can envision a first half 2012 where Handebrands benefits from strong reorder activity and then as we get into the middle of the year, lower cotton costs. But those are far off occurrences that may or may not happen; all I know is that the market will perceive them as happening today. No positions.