Gap Inc. Message Board

I think whether they'll call a special telephone
meeting of the Board depends on what the price does in
the next few weeks. If it makes another decent jump
after June sales are announced, they may go ahead and
split. To be honest, I expected them to do that by now,
but I was wrong. The only thing I'm reasonably sure
of is that Fisher does not like the stock in the
60s, for whatever reason.

As we have seen in this mkt, so many of the
fundamentals that are watched by investors, analysts, etc.
seem to be pretty much out the window. Continued
earnings growth, excellent management and
and all
around good company are my fundamentals.

BTW look
at the volume today and as of
late......
thoughts?

"What Works On Wall Street", studies from 1954
show that low price/sales portfolios give the best
returns on S&P 500 stocks. Read it, it's well done, and
whether or not you agree, it may alter your thinking and
make you a better investor. As a value investor, P/S
has always been my primary screen. GPS does not fit
my style, but value investors have to be able to
forego some big winners in order to maintain consistent
strategy. I can't complain.

I dont see how the price to sales ratio can be
a
better gauge of a company (even a retail
company)
than the price earnings ratio.

The price to
sales ratio doesn't take into account
cost cutting
or otherwise keeping costs low. Someone
said it
was less easily manipulated than the
price
earnings ratio. WELL! Don't you as an investor want
the
company to manipulate earnings through cost
cutting
measures and other means? Or are you talking
about
accounting proceedures and charges against earnings
and
such (gap has had none as far as I
know).

Anyway. Gap has for a long time had one of the
highest
return on revenue (earnings divided by gross sales)
currently
9 cents on the dollar, of all retail companies.
Compare that
to other specialty retailers which
average only 3 or 4
cents earnings on every sales
dollar.

Just my two... er... ah nine cents worth.

very profitable business and fast growing you
eant cheap price to sales stock buy limited but except
for victoria secrets, bed.bath -- intimater brands
and abercrombie which they spun off company doesnt
earn any money maybe that will change they are closing
stores and revamping product.

I believe the same rationality would still
apply,i.e., with GPS'S last two month's history with growing
sales the market is factoring continued sales growth
into the formula. The question is then , can they
sustain such growth rates for the long term? Probably not
but GPS's growth probably will still outpace the
industry and the market will still be correct, perhaps for
a smaller premium however.

I read your message about companies buying large
blocks. I have recently read in a tech investor, or
suretrade digital, that warren buffet had been buying large
blocks for his port. this could have been what you were
seeing.

Also ee. do you think after this week that there will
be a need for a special meeting of the bod. or do
you think that they will wait until sept. to think of
splitting.

Thanks for your repy Doneitmorethanonce, but the
Price to Earnings ratio and the Price to Sales ratio
are actually two different ratios, and some feel that
the latter is more reliable because earnings are more
easily manipulated than revenues. Does anyone have any
insight re GPS very high Price to Sales ratio?

I watched on quote.com and it appeared to me that
the upticks came as a result of a firms program
trades. The screen was green and there were multiple buys
and toward the end there were very large buys...very
large.

Does someone know when the next quarterly earnings report is due out? Thanks!