Board of directors please reduce the share count to 90 million shares from 103 million. It would $380 million. When the price drops, go aggressive on buybacks.
Haha. You read my mind. I was wondering what in the world he was talking about. I wonder if the number of $27 a share has a special meaning to him.??? Why not $26.98????
Well don't worry about the short term drop in sales. The new CEO will fix the problem. EPS will be around $1.25 for 2016.
Well, the analyst are lazy for not doing their own research and fully relying on what management tells them. I do my own research and i don't ever talk to the management of any company. I just look at the numbers and from there i can get all the information i need to make an investment decision. The truth is that GPS has HISTORICALLY reported FREE CASH FLOWS of around $1 billion dollars. At the end of 2015, GPS reported free cash flows of $868 million. GPS has 397 million shares outstanding. GPS pays a $.92 dividend, so GPS will pay $366 million in dividends for 2016. I don't think the FREE CASH FLOW will drop below $800 million for 2016. There is no way that GPS will cancel or reduce the DIVIDEND. Get your numbers correct.
We have a bunch of uneducated short sellers. I do love short sellers because it keeps management in check, but do i think ICON is a good company to short????? absolutely not. Why not????? Icon has generated over $100 million a year since 2009. EPS $-4.88. Do short sellers not realize that the negative EPS came from a NON RECURRING charge of $ 437 million(non-cash charge)?? How in the world do people go short at $7 a share( close to 15 million shares shorted). Can't wait to see the short sellers get burned.
How do some of those analyst have a job?? They downgraded GPS without doing any research. How in the world do you downgrade a company that has a PE ratio of 8?? How come they didn't do the downgrade when GPS was trading at $45 a share when the PE ratio was above 15. Why do a downgrade after the stock already dropped to $18. They should be issuing a Buy rating on the stock. Let me give an example, Assuming GPS ONLY generates $800 million in net income by the end of the year. GPS will have EPS of $2(800/400) giving it a PE ratio of 9. That's assuming GPS does not reduce the share count from the current 400 million. I know that the board of directors will buyback more shares if GPS trades at the current price of $18. Now, if GPS reduces the share count to 375 million and Net Income comes in at $950 million( very likely probability) by the end of the year. GPS will have EPS of $ 2.53. At the current price, GPS will have a PE ratio of 7. God bless the Fisher family.
I bet you the board will take advantage of the low price and execute share buybacks. If GPS underperforms for the next 3 years, the board of directors will likely reduce the share count to a number around 300 million from 400 million. What does that mean to the EPS???? Say GPS generates $1.1 billion 3 years from now. EPS will be around $3.66. GPS will have a PE ratio of 5.46. It will be the bargain of the century.........Let's say GPS improves to $1.3 billion in net income. What will be the outcome???? EPS will be $4.33(times average PE ratio of 15 =$64 a share). The Fisher family is NOT going to let their empire collapse. Investors are thinking more like speculators. AGREE????????
He will take it private for $1billion. The real estate is worth about $25 billion plus the brands are with another $5 billion.
Sears is now worth close to one billion dollars. Congrats Eddie on purposely destroying Sears. I'm just waiting for Sears to hit $5 a share. Super Eddie will make an offer to take the company private at $8 a share. Why hasn't the SEC even noticed what MR Eddie the CON artist is doing??? He is destroying shareholder value on purpose so that he can take the company private for pennies on the dollar.
CEO must go. He took over the company back in 2013, and HE has driven sales to the grown. As a shareholder, i don't understand why he would get any compensation in stock or cash. Oprah needs to give him the pink slip.
The news keeps asking him the same old question about IBM. Buffett is not worried about his IBM investment. Why does the media keep asking that same question?? They expect him to give a different answer, but they never get it. Buffet collects $454 million a year in dividends. He spent close to $14 billion on the investment. He loves to hold forever. Why is IBM a bad investment.????????????
Yes, GPS is a bargain just by looking at the numbers. GPS has 397 million shares outstanding. Even if GPS only generates a Net Income of $850 million, GPS will have an EPS of $2.14(850/397) for 2016. That's assuming GPS does not buy anymore shares back. I'm also assuming the board of directors are kind of smart, and they will take advantage of the price drop to a 52 week low. GPS could use up to $500 million to buyback shares at the 52 week low. GPS could buyback another 30 million shares back thus reducing the share count to 370 by the end of the year. The EPS would then increase to $2.29 (850/370).
Well good luck. Gap generates close to $1 billion in net income. Even if it only generated $400 million in net income it's still a good company.
$1,370,000,000 in CASH on the balance sheet.The board of directors need to use their brain. Use $400 million for buybacks right NOW. At $20 a share, GAP can buy 20 million shares right now.