Hanesbrand Appeared Manipulated on Options Expiration Day

Trading action in Hanesbrands, Inc. ("HBI" or the "Company") over the past few weeks provides a very transparent view of just how severely certain stocks can be manipulated on options expiration day.  As a long-term investor these occurences are insignificant, but it's important for even long-term investors to understand the level of intense market manipulation that can occur by deep-pocket institutions and not to view any of these "random" events as anything more than myopic greed.

On October 25th, HBI reported strong earnings with the stock rallying over 10% and continuing to increase by about 20% in the following weeks on fairly average volume (700k shares per day).  Despite market gyrations that impacted most stocks in recent weeks, HBI remained unfazed trading between $30 to mid $31 on average volume. 

Those focused on HBI options would have seen the value of the $30 calls (November expiry) expand significantly after earnings and maintain a fairly stable value of $1.55 through the past few weeks.  Interestingly enough, on options expiration day - Friday, November 16th - HBI shares dropped 6.4% by midday on average volume, wiping out 97% of the value of the $30 calls.  In addition, there was no major news that impacted the broader markets or even HBI-specific/industry-specific (cost of cotton, etc.) news released that should have led to this type of trading (click to enlarge):

Open interest provides some insight, as it shows that there were 1,190 put contracts at $30 outstanding while there were 626 contracts on the $30 calls.  Further, the selling from the start was very deliberate with no significant upside action until the calls were driven to a $0.05 trade.  Despite the one-sided directional selling on a "no news" day on tepid volume, those driving HBI trading action on options expiration day are probably hoping this drop is viewed as a "random" trading day.

While this occurs frequently with many other boring, under followed stocks and will continue to occur, it's worthwhile to occasionally call out this overt manipulation.

DICLOSURE: AUTHOR MANAGES A HEDGE FUND THAT IS LONG HBI

Comments

[ouvriers cd...:]

WE, THE EMPLOYEES OF CD APPAREL IN HAITI AT SONAPI INDUSTRIAL PARC # 31 LET SHOW TO ALL OVER IN THE WORLD : THE LOGO, CARTON , MOON WORKS FOR THE COMPANY SARALEE/ HANESBRANDS [HBI] AFTER 4 YEARS OF EXCELLENT JOB FOR THEM . THEY REFUSE TO REPAIR US AS THE COMPANY HAS BEEN ALREADY DOING IT FOR ANY PLANT THAT SHE CLOSES IN ANY COUNTRY.SINCE MAI 4 2007 , FRANTZ PILORGE USED THE WORKERS VERY BADLY WITHOUT MONEY AND SAYS TO HANES THAT HE GET PAID FULL COMPENSATION HE LIES ! HE LIES ! HE LIES ! IT'S FOR SO THAT WE INVITE THE RESPONSIBLES OF HUMAN RIGHTS TO COME IN HAITI TO DO THE LIGHT ON THIS CRISIS !!! AS PILORGE SAYS THAT HE IS WILLING TO FORGE THE RESPONSIBLES OF HANES TO DAMAGE THE WORKERS BECAUSE THE WAY FROM HANES TO CLOSE CD APPAREL [HG] HAS BEEN BRUTAL AND ILLEGAL BUT THEY REFUSE TO DO IT AS RICHARD NOLL AND GERALD EVANS GET DONE IT FOR EACH PLANT CLOSED IN ANY COUNTRY . FOR THAT PILORGE FRANTZ PUSH THE WORKERS TO FIGHT HANES UNTIL THE VICTORY CAUSE THE ACT OF HANES IS A DISCRIMATION AND CRIMINAL !!! GOD BLESSES THE WORKERS IN THE WORLD ! ... WE KEEP SINCE 4 MAI 2007 : 6 CONTENERS OF FINISHED GOOD, LOGO OF HANES, 2 CONTENERS CARTONS, 480.000 PIECES T- SHIRTS, MACHINES WITHOUT FORGETING MOON WORK LOTS IN DEVIATION FOR SARALEE !!! YOU HAVE TO KNOW THAT FRANTZ PILORGE LET US UNDERSTAND WHAT ALL OF YOU ARE MERCHANT CRIMINAL MAKING DISCRIMINATION AGAINST HAITI'S WORKERS SO, HE GET WILLING TO DEMAND YOU PAYING THE WORKERS BUT YOU REFUSE .BY THIS ACT HE CONSIDERS THAT IS VERY ABUSING AGAINST THE RIGHT AND PROTECTION OF THE WORKERS CAUSE THEY'RE EXPLOITING THE POOR HAITIANS WORKERS !!! DO NOT FORGET THE BRANDS AND STYLE OF T-SHIRTS THAT WE KEEP[BY HAITIAN LAW] FOR HANES [HBI] ARE : PRINTABLES, CASUAL WEAR, 5250, 5280, SM80, 5170. UNTIL WE GET DAMAGE AND REPAIRS ON HANESBRANDS !!! GOD BLESSES THE WORKERS IN THE WORLD !

2008 Jun 11 03:16 PM

[ouvriers cd...:]

L'objectif de nos démarches envers vous consiste à vous informer d'une situation critique que nous vivions en Haiti , nous les ouvriers victimes de la CD APPAREL S.A depuis le quatre Mai 2007 c'est que : FRANTZ PILORGE [propriétaire de la Cd Apparel] de complicité avec le secteur privé Haiti , la bourgeoisie haitienne et les dirigeants de Hanes [HBI] font tout pour maintenir les ouvriers dans la discrimination et la misère après la fermeture brutale et illegale de l'entreprise par Hanes sans préavis, refusent de nous dédomager et reparer . De plus FRANTZ PILORGE a fait savoir aux ouvriers que Hanes ne veut pas payer les ouvriers par motif de discrimination raciale et la question de couleur, et parcequ'ils sont des noirs haitiens de plus, dit-il, qu'à chaque fermeture d'un plant , les responsables de Hanes se font toujours le devoir de dédomager les employés selon l'exigence de la legislation sociale internationale du travail et le code of conduct de Hanesbrands donc si après quatre années d'excellence et de travail accompli que les ouvriers ont fournis à cette compagnie americaine si encore elle ne veut pas reparer les ouvriers de Cd Apparel S.A en Haiti il considère que c'est un crime contre l'humanité et une violation flagrante de la protection et du droit des travailleurs car dit-il : Cd Apparel s.a dont le propriétaire principal Frantz Pilorge est une entreprise ayant un contrat direct avec la compagnie internationale "Saralee / Hanesbrands [HBI] et que l'organisation " Wrap Apparel" a justifiée legale et formelle par le numero de certification 5382 ; à ce point de vue juridique : La legislation sociale internationale et le Code of conduct en matière du travail font obligation à la compagnie directrice de dédomager les employés une fois resilié leur contrat c'est dans cette optique que nous tenons d'exiger justice et réparation de la part de Hanes pour prix des quatre années de performance et d'excellence réalisées pour elle tout en stipulant que Cd Apparel s.a reste et demeure l'entreprise la plus productive de de Hanesbrands en matière d'efficience ...C'est pourqoi avoue-t-il que Hanes l'a fait pour ST-Domingue, Porto-Rico, Mexique ,Canada et les Plants aux Etats-Unis ; à cette fin il conclut que tous les defenseurs des droits humains et les responsables des organizations syndicales doivent interpeler leur conscience pour faire pression sur les decideurs de Hanes de payer ces malheureux ouvriers outre d'empêcher ce crime odieux !!! Pour plus d'informations , nous vous invitons à cliquer sur ces liens . Notre adresse domicile est à sonapi ,parc industiel # 31 .en voici l'adresse de notre avocat : 509/34297129, 509/37548022 ...Vive lutte des travailleurs !!!

2008 Jun 11 03:17 PM

[ouvriers cd...:]

NOTE : FRANTZ PILORGE AND REGINALD BAKER ARE OWNER OF CD APPAREL S.A IN HAITI OF MORE, CONTRACTORS OF SARALEE/ HANESBRANDS [HBI] THEREFORE, THE HAVE GOT A DIRECT CONTRACT WITH THIS AMARICAN COMPANY [HANESBRANDS] THAT MEANS : SO WHEN AN INTERNATIONAL COMPANY GET DIRECT CONTRACT WITH AN OWNER IN ANY COUNTRY THE INTERNATIONAL SOCIAL LEGISLATION AND THE CODE OF CONDUCT ABOUT WORK MAKE OBLIGATION TO THE DIRECTION OF THE COMPANY AFTER THE CLOSING OF ANY PLANT TO DAMAGE AND REPAIR THE EMPLOYEES .IT'S FOR THAT THE WORKERS OF CD APPAREL S.A [PLANT NAME, HG] IN HAITI INVITE THE PRINCIPAL OF TRADE UNION ORGANISATION, THE RESPONSIBLES OF PROTECTION AND HUMAN RIGHTS, THE LAWER'S MEN AND THE LEADERS OF SARALEE/ HANESBRANDS [HBI] TO COME INTO HAITI AT SONAPI INDUSTRIAL PARK OF TOUSSAINT LOUVERTURE AVENUE BUILDING # 31 TO MEET WITH THE WORKERS SO THAT THIS CRISIS COULD BE UNLOCK . DO NOT FORGET THAT THE LEADERS OF HANES GET DAMAGED THE EMPLOYEES OF DOMINICAN REPUBLIC, PUERTO- RICO, MEXICO, CANADA AND U.S.A ETC... FOR WHAT NOT THE HAITIAN'S EMPLOYEES AT CD APPAREL S.A . BY THIS FACT IF HANES CONTINUE REFUSING TO DAMAGE THE WORKERS EVERY BODY CAN CONSIDERS THIS ACTION LIKE BEING OF EXPLOITATION, CRIMINAL, ABUSING, RACE DISCRIMINATION , INJUSTICE OR BECAUSE OF THE WORKERS ARE THE BLACK PEOPLE . TO NOT THAT CD APPAREL S.A [HG] IS CERTIFIED BY WRAP ORGANISATION AS A PLANT OR ENTERPRISE IN HAITI LEGITIMATE AND LEGAL TO BE WORKING FOR SARALEE/ HANESBRANDS [HBI] AND THEN THE CERTIFICATION NUMBER FOR CD APPAREL S.A IS 5382 . TO REMIND THAT CD APPAREL S.A HAS BEEN AND STILL LIVES THE NUMBER ONE FROM ALL OF PLANT PRODUCING BETTER AND GIVING THE BEST EFFICIENCY ABOUT PRODUCTION AND QUALITY IT'S FOR SO THIS PLANT IN HAITI CONSIDERED TOWARDS THEIR EYES LIKE BEEING THE BEST IN THE CARIBBEAN . ALL PEOPLE CAN VERIFY THIS INFORMATION IN THE YEARBOOK OF SARALEE / HANESBRANDS . IF IT'S SO ACCORDING TO THE LEADERS OF HANESBRANDS [HBI] THEY HAVE TO FIXE THEIR POSITION SO THAT THE RESPONSIBLES OF HUMAN RIGHTS, THE TRADE UNION ORGANISATION AND THE LAWER'S MEN COULD TAKE ACTION ON THIS BAD SITUATION AGAINST THE POOR HAITIAN WORKERS. GOD BLESSES THE WORKERS IN THE WORLD!!!

2008 Jun 11 03:18 PM

[ouvriers cd...:]

The objective of our walkout towards consists of you it's to inform you of a position criticizes that we lived in Haiti, we the workers victims of the CD APPAREL S.A since May 4, 2007 this is that: FRANTZ PILORGE [owner of the cd apparel] of complicity with the private sector Haiti, the middle class haitian and the leaders of hanes [HBI] do all to maintain the workers in discrimination and the misery after the brutal closing and illegal of the plant CD APPAREL by Hanes without previous notice, refuse of us damage and repair. Of more FRANTZ PILORGE informed the workers than Hanes does not want to pay the workers by motive of racial discrimination and the color question, and course the workers are black haitian of more, he says, that to every closing of a plant, the persons in charge of Hanes do themselves always the duty of damage and pay charge to all of employees according to the requirement of the social international legislation of the work and the CODE OF CONDUCT from Hanes Therefore, PILORGE says if Hanes does not want repair the workers of cd apparel in Haiti this is a crime against humanity and a flagrant violation of the right of the workers. For more of informations, we invite yourself to click on these links. We are at sonapi, parc industial # 31. in here the address of our lawyer/ attorney : 509/34297129; 509/37548022; 22133089.We already get informed all People in the World by that means: The Trade Union Organisation , the ResponsiBles of Human Right ,the Social Group and the Lawer's Men, if the Leaders of Saralee / Hanesbrands [Hbi] could take an other way different than the only one to damage the poor Haitian Workers to take note against them and sentence that nasty action against the protection and the Right of the Workers in the World . In sum Pilorge and Reginald Baker note for example Hanes pays charges and damage the employees of D.R, Puerto Rico; Mexico; Canada and the U.S.A Plant for what according to him Hanes refuse to dame the workers of CD APPAREL S.A [HG] for this : The responsibles of human right and the lawer’s men must demand to the responsibles of Hanes to pay the workers after 4 years of excellent works for the company Hanes !!! HE TERMINATES BY TELLING THAT THE LEADERS OF HANESBRANDS EXPLOIT THE POORS HAITIANS WORKERS [SAYS FRANTZ PILORGE ]

2008 Jun 11 03:18 PM

[ouvriers cd...:]

Responsibles of the Hanes brands,
The comitee of workers of CD Apparel, at building #31, parc industrial (sonapi) HAITI joins their lawer, Jorice Oremil to greet the differences national organization and international for their help and to their enterprise fight by the said workers realize to damages.
Note that the boss of CD Apparel Frantz Pilorge came in Haiti after some meetings with the leaders responsible of Hanes and he has made the workers know that the bosses of Hanes,such as : Richard noll, Gerald evens,Micheal Jordand ………
Are vampires who don’t cease to exploit the workers around the word.
Speaking of Haiti he make understand that the Haitians workers are victims of racial discrimination. This enterprise “CD Apparel” has been congratulated by the same leaders for its efficiency and it’s products without any others .
The Haitians bosses put themselves to the bosses of Hanes side to exploit more the poor Haitian workers .
Lots of companies around the wold have been compensated with discussion such as:
Dominican Republic :3millions dollars us
Porto-Rico =$18.000000 US
Mexico :=$ 27.000000US
Canada : big millions
USA : big millions
And Haitians workers suffer until now and the workers of this company are left to their own devices.
These workers can’t send their children to school , pay the rent not to say sanitary cares about fity thousand (50000) workers arrange themselves already for a strike which aims at two objectives:
1-Ask Hanes Brands to compensate the workers of CD Apparel
2-Ask the Haitian parliamentaries to note the law on minimum wage.
We, workers of the cd apparel let us learn that some bosses of the company Hanes Brands such as: Richard Noll, Gerard Evens, Jorge Oliva from WRAP and others ally themselves with the haitians employers to know: the Bakers, the Apaids, and Richard Coles to prevent to the employees of CD Apparel to obtain their damages and repairs as Hanes does it always for the others plants.For your information, we say that :
Haitian government for the coming days will arrest certain other bosses for corruption and contreband , after the brandt , the Boulos , it will be the Baker’s and Richard Coles, the Apaid’s , Madsen, Acra, Meuz turn . This is the reason we want to ask the persons in charge of hanes to divorce with these employers in order not to to be considered as accomplice in the file of the workers of cd apparel because the state haitian [René Preval] will follow: authors and accomplices in this so national one as international file if hanes refuses, she will be considered as social danger for all the workers of the entire world.
We are waiting fo Hanes investigation in Haiti to release this crisis.
We write the American congress to take action to close the Hanes enterprises.
The workers of CD Apparel have been waiting and expecting that the leaders of Hanes will not shut the door in their face and will satisfy the workes

2008 Sep 08 05:10 PM