GPS

[oldnemesis]

http://finance.yahoo.com/news/gap-sales-slide-april-retailer-205142472.html#

http://finance.yahoo.com/news/nothing-fill-gap-shares-slide-190951981.html

http://www.cnbc.com/2016/05/10/gap-shares-plunge-analyst-says-company-in-big-trouble.html?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=103622994

http://www.fool.com/investing/gener...gn=article&utm_medium=feed&utm_source=yahoo-2

http://blogs.barrons.com/stockstowa...er-sales-bloodbath/?mod=yahoobarrons&ru=yahoo

http://finance.yahoo.com/news/heres-why-gap-gps-stock-174505798.html

http://www.thestreet.com/story/1356...apart-cramer-says.html?puc=yahoo&cm_ven=YAHOO

http://stockcharts.com/h-sc/ui?s=GPS

Trade:
Dec 25/30 bear call spread for a net credit of $25
Yield = 25/475 = 5.26% in 220 days or 8.7 % annualized
Prob = 81%
(I won't do expectation because this news coupled with previous disappointments clearly places stock price outside of any statistical distribution)

Price..... Profit / Loss..... ROM %
14.48........... 25.00.......... 5.26%
18.89........... 25.00.......... 5.26%
23.55........... 25.00.......... 5.26%
25.00........... 25.00.......... 5.26%
25.25............. 0.00.......... 0.00%
28.20........ (294.70)...... -58.94%
30.00........ (475.00)...... -94.74%
32.85........ (475.00)...... -94.74%
37.50........ (475.00)...... -94.74%

Remember the mall?

http://www.businessinsider.com/23-haunting-photos-of-a-dead-mall-in-ohio-2015-8

But now I only hear
Its melancholy, long, withdrawing roar,
Retreating, to the breath
Of the night-wind, down the vast edges drear
And naked shingles of the world.
.............................................dover beach

 

[oldnemesis]

http://www.wsj.com/articles/fitch-downgrades-gap-to-junk-status-1462975520

This is the sort of thing that can push a troubled company over the edge.

GAP debt is now junk status. Many funds etc. cannot hold debt that is less then investment grade. So GAP will need to pay higher interest rates on its debt and will have difficulty rolling over its debt and with placing any new debt. Puts another nail in their coffin.