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A global specialty retailer operating retail & outlet stores selling casual apparel, accessories, and personal care products for men, women & children under the Gap, Old Navy, Banana Republic, Piperlime, and Forth & Towne brands.
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pencils2 (99.81) Submitted: 8/25/06 5:15 PM : Start Price: $16.06 GPS Score: -18.94
Time to re-up with my underperform call. Gap simply is not turning around, and their results will not satisfy shareholders or analysts. Unless something major happens towards a turnaround over the next six months or so, I see Gap shares at $14 and less. If a retailer lowers guidance for the holiday season (which is what Gap has done), it isn't a good sign of what is going on with the company.
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Fuma102 (34.66) Submitted: 11/25/06 1:40 PM
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Sorry David, but I dont agree with your 1 year timeline on gap. Their product "Red" clothing line flies off the shelves. I feel alot of people are gravitating toward this "socially responsible" product line and helping keep gap afloat - for now. market perform for the year, with a probable under perform come next november.
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pencils2 (99.81) Submitted: 11/27/06 12:10 AM
Well, I certainly hope you're right, because management certainly has a dim, lowering outlook with Gap. Management has continually lowered estimates, hasn't shown any sign of a turnaround whatsoever, and just doesn't know how to run this business. People have been saying Gap's going to turn around for years now, but the business sure ain't improving none. As long as the business keeps losing more money every year and management keeps lowering their already dim outlook, I'm going to keep this underperform call. Hopefully I'm wrong for the sake of Gap shareholders, but there just any sign of this company turning around, and as a result, there isn't anything that can keep the stock flat or going up for very long. In short, I don't see any sign of improvement that'll make this stock beat the market, or even perform the same as the market.
Allstar13913 (99.92) Submitted: 2/27/07 7:28 PM
I agree with you Pencils, that Gap is a severe short target. I dont find it a very likely candidate for a buyout firm, and currently it is uncompetive within its market. With their recent announcement closing their Forthe & Towne concept stores, I believe Gap feels it must correct the damage now, or all will be lost.
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