The Gap, Inc. (GPS)

Looks like their execs may be buying

Yes, there is a recession. The consumer will cut back and / or bankrupt.
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Slight upswing in fall, but not enough

CEO who knows theme parks not fashion. Poor mgmt team made up ex-Disney folks who just don't get the business. Just look at whats on the store shelves!

stores are underperforming peers, have potential for turnaround, need new CEO,

Gap has been in the dumps and deservedly so- and good ridden to that disney ceo what a disaster. the good news is the fishers are now back in control and being that Gap is their baby they'll do what it takes to get things back on track. Gap is big and there is plenty of room to shake things up cut costs (close unprofitable stores) and reinvest in the company. It seems Gap will be remodeling their outdated stores. Gap is looking for a new CEO and if they've learned anything they're sure to hire someone well qualified especially given the appeal of turning around a misdirected stalwart brand like the GAP. The announcement of a new CEO alone is enough in my opinion to cause share prices to rise. Keep in mind like all fads and trends it usually begins with out of favor companies.

Due to hi competition in the retail business.

Still don’t like the company … Warren Buffet sold it from his portfolio. There are companies with way better performance … I’d wait and see … if this new CEO is so great, he/she will turn this ship around & start producing stellar numbers … I think Gap has a fundamentally poor business model. The celebrity advertising is catchy but selling Old Navy quality for Express prices just doesn't cut it

Return on Assets (ttm): 8.45%

Return on Equity (ttm): 14.68%

Quotes from Recent Financial Articles …

Goldman's Margaret Mager kept a "Sell" rating on Gap Inc. and lowered her price target by $1 to $16. "We view the company as facing structural issues that go beyond merchandising," Mager wrote in a client note. Shares of Gap, which also operates Old Navy and Banana Republic, declined 17 cents to $17.74 on the New York Stock Exchange.

Among the more notable stragglers is Gap Inc., whose troubles led to the departure of its CEO in January. The retailer's shares continue to be hammered, falling 10 percent over the past month.

its been a few weeks since they announced that they had hired ib's for a "maximization" - anyway there is about 5 - 6 upside pts for a point or two risk - what the heck!

Undervalued

Great takeover target and brand name.

james montier pick

New RED campaign looks enticing. Even though GAP stores are on a slump, management continues to be resilient by buying back shares and cutting costs. Same store sales have been negative for some time now but recent quarterly results proved favorable for Banana Republic and Old Navy. Forthe and Town should be a viable place for Boomers to shop in the next couple of years.

bam

Gap has had some trouble figuring out who they are, since they seem bored by their predictable khakis and jeans. A re-focus on the basics might spark the flagship brand, but I'm more excited by the Old Navy and Forth & Towne brands. Old Navy is reliable and cheap for trendy items, along with sturdy denims in a huge range of styles & sizes. Forth & Towne, a new Gap brand, offers Nordstrom-style service and boutique store design in mall stores, with stylish work-appropriate pieces for women of all sizes (no plus-size racks here with different designs). As Forth & Towne shops open over the next few years, they will compete with Chico's, Coldwater Creek, Talbots, J. Jill, and other mall stores with a boutique vibe, as well as with the customer-focused anchor stores.

Stock underperforms comps. Avoid buying GAP!

They can't keep their stores clean. The dust and sloppy merchandising is terrible. Management is keeping up the bottom line at the expense of the stores. That is why same store sales are in a death spiral. All retailer rot before they die. A&P and Wards both did the same thing let the stores go to get short term profit.

I think that with it's focus on international humanitarian campaigns, ir will only work to endear more people to it's products. Plus I really like some of their clothing options.

In the current climate the share overvalues the company. We're not going to see retail outperform and the good ones will struggle to stand still. On that basis the share has recovery priced into it and no chance of that