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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (13849)	2/4/2002 8:20:37 AM
From: Mark Marcellus	Read Replies (1) \| Respond to of 78748

As a long time GPS holder, let me chime in. I agree with Mr. Clarke that bankruptcy is not an immediate concern, although Gap certainly can't afford to have another disastrous year. The one thing I would point out is that, as an employee, your wife's friend is in a much better position to make a judgment on this than she thinks. The key factors for a Gap turnaround are a better handle on merchandise selection, more timely delivery of merchandise, and overall better management of their supply chain. She is right there at the front and should be able to judge this. Are the new computer systems finally working effectively? Are the stores busy? How is the merchandise moving? Are they still marking down like crazy, or has that finally stopped? Is the merchandise arriving from the warehouse when it is supposed to? Have they cut down on the lead time required for their overseas suppliers? For portfolio allocation issues and the like, she might want to consider consulting a professional. But assuming her overall financial house is in order, she probably has a lot more insight on her investment than she thinks. And if she can't give a positive answer to most of those questions by back to school time, at the latest, she should be very concerned.