PE: 10 PEG: 0.85

The Real Story: November 19: Stuck in losing territory for much of Wednesday's trading, U.S. stocks took a late-day plunge to settle with massive losses, as record-setting declines in housing and consumer prices wreaked havoc on the major averages.
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Cramer: A Vicious Retail Down Cycle: This is a perilous time in retail, says Jim Cramer.

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They Just Don't Get Market Swings!: Marek Fuchs rolls his eyes at the 1,423 explanations the business media gave for one big market move.
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Due to hedge fund pressure Gap [GPS] is probably too cheap, says Guy Adami.

Cramer: Stick With These Two Retail Winners: Jim Cramer serves up his latest retail strategy.

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Cramer: Hedge Funds Will Regret Dissing CSX: Jim Cramer says hedge funds have no idea how exceptional this stock is.

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Adami pointed out that Gap (GPS) is performing better and if the stock pulls back he would buy it.

Strong Buy -- Price 19.01 on Aug. 25
by CL King & Associates

Gap shares trade at P/E of just 12.7 times, based on an average of our EPS estimates for FY08 at $1.42, FY09, $1.57... . With group average 14.7 times, at [our 24 target], GAP would trade at a P/E of 16 times, which we believe appropriate for a company with strong earnings-growth prospects through FY09. We [believe] Gap is transitioning its margin expansion from inventory reductions to a wide range of key drivers. Market cap: $13.8 billion.

They Just Don't Get Sears!
Marek Fuchs recoils in horror at business media coverage that says Sears was hurt by the economy without mentioning Costco's great performance.

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bad retail

Struggling retailer, weakening consumer.

They got it wrong and continue to not see the writing on the wall.

"Basically, there aren't many retailers that are able to do what they have done. In fact, most have run into problems. Wal-Mart [WMT], Home Depot [HD], and recently, Gap [GPS] have run into problems because they have high returns but haven't been able to compound them."

Rudderless mess. (Long overdue) management change only half complete. Founding family exerts too much influence. Lost its "fashion sense", IT systems weak, and culture not in tune with creating dynamic change.

Still not making any money.

I wish I knew.

Gap (GPS) reported very weak February results. Comparative-store sales, or sales at stores open at least one year, were down 4% last month companywide, and off 5% for the Gap division.

The company "has lost its groove," noted Carol Levenson, of the bond-analysis firm Gimme Credit, in a recent report. What's perplexing to Levenson and others is that the company continues to add floor space even as it is grappling with contracting sales and gross margins that are at five-year lows.

performance