David BurrowsGapGPSPARTIAL BUYAug 13, 2012

A high-beta stock. She'd love to get back into it--needs a dip. Trades at 11x forward PE. Is delivering on comps. Is mad she sold it (at a profit).

They reported a mixed quarter today with an earnings beat, but revenues missing. But Banana Republic is improving, but management said they have problems with Trump's tariffs that will drag on their margins. Yet, shares rallied after hours based on the conference call.

Really suffering today, despite the good print. Company estimated $300M in costs due to tariffs, but that tariffs will be neutral in the long term. If you're looking for a retail stock, a good name to buy now. 

But is retail a good thing to own? It's a very tough trade, just like airlines. You have to be right, and it's very economically sensitive. Jeff Bezos says that, eventually, all retailers go broke.

Is oversold. They have strong same-store sales.

Is up 22% for her, but won't take profits now. It trades at 12x PE and yields 2.5%. It's a turnaround story run by a good CEO and creative director. They are gaining market share in 3 of their 4 brands. Likes it long term.

Likes CEO. It's been gaining market share for 7 straight quarters as inventory declines the past 8. 

She added to the Gap, purely because of the CEO change, and it's taken time for him to make an impact by hiring new executives to his team, resulting in inventory control and better gross margins. Have been gaining market share for the last 6 quarters.

It reports Thursday. They delivered an amazing last quarter. Shares soared, then plunged. He expects another great quarter, but no crash.

It's turning around. Just reported. Only 1% growth in same-store sales in their largest division, Old Navy, but shares caught fire, even though other divisions should weakness.

Shares had fallen before last week's report. They beat far better same-store sales and an earnings beat which surprised the street. Shares soared over 30% last Friday, hammering short-sellers.