Yes, it looks like we have a bottom in Gap (GPS) - Get Report. First Boston just upgraded it. Mickey Drexler, the Gap seer, is back in charge -- and on the conference call, no less. And all of us searching for a way to play casual everyday may finally have it, because Drexler admits that Gap hasn't done a good job with it and vows to do better going forward.
What a relief! (Especially if you are long it like I am.)
Gap is one of those stocks that has really been weighing on this market. Stinking it up. Putrid, just putrid. Those of us who traded in '87 remember that it was the ultimate tell. It started going down that summer -- August of '87 was its worst month -- and "foretold" the crash for anybody who was listening.
To see it turn around would be a strong signal that one of the most "owned" retail stocks has stopped bleeding. That still leaves
as part of the tandem of retail destruction. I have no idea when that one will bottom.
Short alert? Anybody notice that
stopped delivering daily auction numbers? They said they were going to do it on the conference call, so this is nothing frightening, but the trend, which we duly monitored before they deep-sixed the numbers, looked like it had peaked in April. Maybe seasonality? Or maybe more of a fad? I don't know. Ugly chart though. And one that now can only be completed by hand. Looks like a chart of the stock!
Also, to set the record straight,
Bank of America
said absolutely nothing negative about
yesterday, despite rumors that they were going to.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Qualcomm and Gap Stores. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at