slickvguy

Can The Gap Turn Things Around?

A bit more...

As far as GPS as an investment goes, one of the cornerstones of value investing is that management should be superior. From Buffet to Whitman to Cundill - they all agree on that point. Why in the world would you invest your hard-earned money with a LOUSY management? They frankly don't deserve it. And the compensation is insane at the upper levels of this poorly performing company, while at the same time they are cutting back staff and reducing raises for "the troops". That's the type of behavior that should not be rewarded by investors.

I trade this stock once in a while, up and down, but I would not consider it a wise turnaround play. Especially not at these prices.

For over 5 years I've been hearing the same thing from GPS, as they frantically try to reinvent themselves. But they just don't get it. Living in the past. Reminds me of the NYT.

There are cases of old companies that became stale, yet were able to successfully reinvent themselves. But most don't. The main problem here is not financial - it's psychological. A radical shift is needed. It's ironic - because their customers have shifted, yet those in control of the Gap have not. It's putting the very basics of marketing on their head! Bizarre.