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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (13846)2/4/2002 12:39:22 AM
From: James Clarke  Read Replies (1) of 78748
 
Two years ago the thought that I would not be buying GAP below 15...I would have considered it loony. But here it is and I've looked and I just don't see it. Its not something I would short, but it is not something I would buy either. The valuation still reflects a lot of faith.

In 1995 I first looked at Gap and just plain missed it. That was a company with no debt, fresh new concepts and plenty of room to grow. Very different situation today. Even if they get fashion right again, where are they going to put more stores? You going to sell Gap clothes at gas stations or something? This just ain't going to grow any more, even if they do regain control of the business. The talk about bankruptcy sounds very very premature to me.
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