Positive Outlook for Unifi

A Boston presenter likes Unifi (NYSE: UFI, $4.12) at this level. One of the directors has made a number of purchases at or below the current price in the past two weeks. Management reiterated on the recent conf call the previously given EBITDA guidance for fiscal 2010. Business prospects are looking better with apparel manufacturers seeing consumers making a stronger than anticipated comeback. Growth for this producer of polyester and nylon yarns over the next two years will come from developing regions like South America with the company's Brazilian operation doing particularly well, and from UFI'S higher value-added Reprieve line based on recycled PET. The presenter notes that if a deposit requirement on water bottles is passed, leading to lower prices for recycled PET, the volume available to Reprieve would increase dramatically.