The Gap, Inc. (GPS)

Gap's struggles are significant, yet it seems that the stock price is buoyed up by hope that it can yet turn around. Yet with continually worsening fundamentals, it has only fallen about 20% from its 2005 range around $21. For this stock to outperform the market it will take significant changes - changes that are unlikely to materialize or materially affect the stock in the next year.

I'm just shorting this one because I think it's funny that theres about another 10 underperform pitches on it over at ticker symbol GAP

The Gap has been in the doldrums for a few years now. Fashion is a fickle industry, and attitudes can change quickly. The recent introduction of their new Skinny Black Pant marketing appears to have been a Good Thing(tm) for The Gap. Let's hope they can sustain the momentum and regain some of their lost market share with further great marketing pitches and cool fashion trends.

Years of chasing seasonal fashions leaves Gap bland and brand-less. Say what you will about visionary leaders over, the stock will stumble until management realizes it must rally around basics.

GPS - recent financial statements are ugly 7% decline in sales 20% lower guidance for the year.
Estimated 2007 EPS 0.89 I don't think someone would pay 15 forward P/E with declining sales.

This company should be at 0.89x15=13.35$ by the end of this year.

All the girls between 15 and 35 that I know want to buy at these stores. They seem to know their market well.

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 It seems Gap will be remodeling their outdated stores.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.

Gap rose 3% today alone, based on Morgan Stanley's upgrade it would appear. They think Gap is winning back customers. But same-store sales have been trending downward. That can't be good for the long term. And I just don't see them becoming way popular again with all the retail clothing competition out there right now. I really don't see how the recent upsurge in the stock price can last.

The Gap was massively successful in its heyday (long past) when the clothes-horse generation (15-25 year olds) found their merchandise to be cool, relevant and worth buying repeatedly. Ask any 15-25 year old today what they think of the Gap and they'll tell you "booooring". The Gap still has customers, but not the high-volume masses that drove them to their peaks of the past. A past they will never revisit.

There is a very tangible price floor in the high teens on the GAP's share price. Even after the horrid same store sales declines over the past year or so, this stock just won't allow itself to breakdown. I mean their performance can only get better from here right? Very low downside and some pretty decent upside. I like the fact that a Fisher is now in charge. Without question, he'll align the interest of the Company with the Shareholders.' Last I heard the Fishers owned 30% of this pig. I still think a Buyout is still a possibility over the next 12 months.

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.

The Gap is out of style. I can't think of one kid in my family or their circle of friends who even walks in the store. Last time I went in Gap was 20 years ago and walked right out because of the gaudy, low selection of colors and expensive prices. Savvy shoppers will pass this store right by. My kids would rather shop Hollister (ANF) and Zumiez...I'm amazed at how much press the Gap gets and I'm surprised they're still in business...

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.

Gap is coming Back!

I know this is not a high yielding stock, but who doesn't wear Gap clothes??? Everyone I know wears Gap or Old Navy or Banana Republic, so I believe this is a consistent stock - one that will be around for a long time.

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.

Low debt

Lots of cash on hand

Recent slow growth

I think this one is going to turn the corner

Zacks #1 rank...

slight underperform. will probably close this out after a few months.