Gap has industry talking while Michael Kors falls

Friday, 28 December 2012

Gap, Inc. (GPS) has announced an ex-dividend date of December 28, 2012 and a cash dividend payment of 0.125 dollars (Rs 6.86) per share scheduled for January 30, 2013. Shareholders who purchased GPS stock prior to the ex-dividend date are eligible for the cash dividend payment. This marks the fourth quarter that GPS has paid the same dividend. At the current stock price of 31.37 dollars (Rs 1, 720), the dividend yield is 1.59 percent, highlighted 'MarketWatch'.

The previous trading day's last sale of GPS was 31.37 dollars (RS 1, 720), representing a drop of 17.12 percent from the 52 week high of 37.85 dollars (Rs 2, 076) and a 76.73 percent increase over the 52 week low of 17.75 dollars (Rs 973.6).

The stock has had the industry talking for the past weeks, as it has been signalled as one of the stocks tp watch within the apparel sector in 2013.

Standpoint Research upgraded Gap, Inc. from 'Sell' to 'Hold'. Analyst Ronnie Moas comments, The Gap "is a name we went in-and-out of four times 2010-2012. After my latest exit in February the stock shot up by 75% in a move that had me scratching my head...When it hit $35.79 (Rs 1, 963) on August 20 I downgraded from Hold to Sell. The shares have since dropped 15.4% in a market that is even and are now off 20% from the October high... I would cover short positions at this time but would not go long. We would reinstate this recommendation if the stock takes another leg down to $24 (Rs 1, 316)-$26 (Rs 1, 426). I think there is a 50/50 chance we get that in 2013."

Still in Wall Street, Michael Kors led the losers group, seeing its stock to fall by 1.3 percent to close at 49.39 dollars (Rs 2, 709). Analysts at Citi downgraded their rating on the stock.

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