A Lesson From Gap's Stumble

The poor results at Gap Stores (GPS) offer a portfolio management lesson that I experienced personally and want to offer as part of a "teachable moment."

My growth-at-a-reasonable-price -- or "GARP" -- portfolio bought Gap on Dec. 10, 2012, at $31.52, under a thesis that earnings momentum would be solid in 2013 as the company executes better on managing its assortment and moves toward more "basics" as the economy falters. In fact, the stock performed well through the summer, as EPS estimates were steadily ratcheted upward and the company put up good comps and accelerating sales and margins....312 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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