GPS soared after the company announced it was spinning Old Navy.
The reaction is somewhat surprising: it was already clear that GPS was an Old Navy story.
The gains only get GPS back to past levels - which were, and are, too low.
The bull case still holds: Old Navy supports the entire value of the current business, leaving valuable Athleta and two turnarounds available for free.
I'm more than a little bit confused by the huge reaction that greeted Gap (GPS) stock after the company announced its plans to spin off Old Navy. The company's decision does make some