Gap's Change at the Top Confirms RBR Mall Tour Takeaways

One of the key takeaways from our November mall tour at Westchester with Arnold Cohen's the former COO of J. Crew, was lack of focus or defined customer in Gap's strategy. Thus, it came as no surprise to us when it was announced earlier this week the company was replacing the head of its namesake brand.

US Bancorp: 30-50% Upside

A New York presenter likes US Bancorp (NYSE: USB, $27.22) at this level. The 5th largest bank in the US has maintained its conservative credit culture during the recent crisis and used severely discounted valuations in the space to make targeted acquisitions. USB doesn't get enough credit for its robust fee businesses. Recent results point to a pick up in loan growth, but significant room for improvement remains, with only a 26% utilization rate in the wholesale operation. A significant dividend increase is the management's top priority, pending a response from the FED on the bank's comprehensive capital plan.

ARM Holdings: Short Based on Valuation

A New York presenter recommends a short on ARM Holdings (NASDAQ: ARMH, $26.99). He respects the company's dominance in semiconductor IP for the mobile market, but believes that the valuation has gotten ahead of itself. The threat from Intel, while dismissed by many on the Street, is credible from the presenter's perspective. The stock is trading at 27 times most bullish earnings estimates for 2011 and investors may question where more upside can come from.

Vitesse: Settled with SEC and Now Poised for Strong Growth

A Boston presenter likes Vitesse Semiconductor's prospects now that the company finally has settled its option-backdating case going back years with SEC and received a clean audit for its fiscal 2010 report. Vitesse's solutions cover all areas of enterprise and carrier ethernet markets, and the company has strong relationships with most of the leading players in the industry. VTSS has substantially lowered its costs by outsourcing manufacturing operations, while at the same time increasing its R&D spend. The company is adding new products at an accelerated pace and has scored a number of important design wins lately. Fiscal 2011 will be flat, as legacy products go away and new products start kicking in, but growth is poised to resume strongly in FY 2012. The presenter targets $8 or 50% upside from the current level.

Global Partners: Still Recommended

GLP is still recommended by one of our presenters (NYSE: GLP, $29.48). The presenter has just added to his position. This distributor of refined petroleum products and natural gas stands to gain from ongoing divestitures of non-core midstream assets by majors.

GSI Commerce: Very Overvalued at This Level

A Boston presenter recommends a short on GSI Commerce (NASDAQ: GSIC, $23.50). This provider of e-commerce solutions is facing a serious threat from Amazon, Digital River and some larger rivals in a fiercely competitive market for outsourced online services. The company has been able to grow its top line very consistently, but profitability has remained elusive. Five largest accounts generate close to 40% of the total revenue, and there is a real possibility some of these customers may take their e-commerce operation in-house. The stock is trading at approximately 100 times projected 2012 earnings. The share count has been diluted significantly in the last several years to help finance a string of acquisitions.

Famous Dave's of America: Stable Growth in a Niche Market

A Boston presenter likes Famous Dave's of America (NASDAQ: DAVE, $10.56). This casual-dining chain specializes in BBQ dishes served in a unique, live-music accompanied setting. Over 70% of all stores are franchised, with 90 more units projected in the next 5 years. The company is rolling out a number of initiatives to boost same store sales. DAVE generates healthy cash flow. The stock is trading at multiples below its historical averages and versus the peer group. The company has been buying back shares and just last December announced another authorization for more than 10% of all shares outstanding. The Street's coverage is very limited.