East guru. Talking about closing stores doesn't increase sales and that continues to be GAPs number one shareholder value problem. Is it a good thing that they'll be getting their costs in line? Yes, but it's a long way from there to $25. If you think a PrEq firm is going to come in with valuation of over $20B for a retail company with declining sales, no real estate assets to leverage for financing, a suspect brand and no established management team I fear you might be a bit unrealistic.
At their '07 guidance, we're looking at PEs of 21.1 - 23.8. American Eagle and Abercrombie, two competitors that are much better run, are currently at 20.3 and 16.9 respectively and that's on their trailing 12 months.
I was surprised to see the stock recover in after market, but I don't think that's necessarily a good indicator of broad market sentiment. If this doesn't open up down $0.25 or more, I'll be very surprised. Just my opinion and I could be dead wrong, but we'll find out shortly.