Citron's Left Sees Gap Stock Trading Below $20 in Six Monthsby and
Stock to fall when company books losses from store closings
Gap shares fall as much as 3.4% before erasing declines
Andrew Left, the founder of short-seller Citron Research, said he sees Gap Inc. trading below $20 a share in the next six months.
“I’m short Gap stores,” Left said today in an interview with Vonnie Quinn on Bloomberg Television. The chain is closing stores as shoppers go elsewhere, he said. "If you look at everything that has come out, all of the surveys of what teens do, where people buy, how people shop, you see Gap as irrelevant.”
Gap’s stock will take a hit once it realizes losses from closing stores, Left said. The company’s shares fell as much 3.4 percent after the comments, before erasing losses to close at $27.28 a share, up less than 0.1 percent.
Calls to Gap seeking comment weren’t immediately returned.