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Home-haircut indicator: In the footsteps of the underwear indicator

So, who out there cuts their own hair? I do, mainly because it is fading fast and it is a lot easier to have my wife take the clippers and then razor to my head rather than paying to go get my hair cut professionally. Now that I have started to outgrow my hair (a fact of life that many men have to accept), I have realized that it is both more convenient and cheaper to have my wife cut my hair.

This practice used to be a tradition, with fathers taking pictures while cutting their young boys' hair -- but it now turns out that home hair cutters are thriving during the recent economic downturn, at least according to a Wall Street Journal article (subscription required).

Continue reading Home-haircut indicator: In the footsteps of the underwear indicator

Cramer likes panties: says 'Buy' Hanesbrands spin-off

Wednesday on Jim Cramer's MAD MONEY, the loud-but-excited analyst discussed a spinoff of Hanesbrands Inc. (NYSE:HBI) fom Sara Lee Corp. (NYSE:SLE).

The question on investor's minds should be, naturally, does a spinoff make sense? To give a little background, Cramer referred back to the GM-Delphi spinoff, opining that the two auto units were too tangled to properly unwind. In this case, it may be a bit simpler; after all, he asked, does it make sense for a cupcake and meat company to own an underwear company? Nope, said he, the two units needed to be under a different roof. Can HBI make you money? Cramer says, "yes."

Hanesbrands shares traded up 2.3% to $23.18 in after-hours trading after Cramer's well-reasoned recommendation, especially after he referred back to several prior deals, including the Freescale spinoff, the Coach spinoff, and the Darden spinoff.

He did say that Sara Lee forced it to take on a lot of debt, but the company's lower margins may improve since manufacturing has been moved internationally.

In a call-in Cramer said he thinks Under Armour, Inc. (NASDAQ:UARM) is going higher. In another call Cramer said Jos. A Bank Clothiers, Inc. (NASDAQ:JOSB) is a "stay away" story.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

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Last updated: November 11, 2009: 02:42 PM

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