Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<p>Earlier this year <a href="https://www.smartkarma.com/entities/7941" target="_blank" data-smartkarma-citation="entities:7941:1">Gap Inc/The (GPS US)</a> announced its plan to spin-off its underperforming brands. Under which the company intends to separate into two new companies. The original company, Gap Inc will keep ownership of their lower priced fast fashion brand Old Navy while the new company will focus on revitalizing the company’s mainstay brand Gap and other major brands such as Banana Republic, Athleta, Intermix and Hill City. However, the transaction is still pending final approvals by Gap Inc’s board of directors and SEC. But the company intends to complete the transaction by 2020.</p>
<p>Gap Inc’s share price rose more than 15% immediately after the news, but since then the price has fallen more than 24% despite a positive return from S&amp;P 500 during that time.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/088/689/original/1.png?1558628264" class="editor-image img-responsive" data-smartkarma-image-id="88689"></figure>
<div class="content-caption">Source: Cap IQ</div>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/088/690/original/2.png?1558628277" class="editor-image img-responsive" data-smartkarma-image-id="88690"></figure>
<div class="content-caption">Source: Cap IQ</div>

Earlier this year Gap Inc/The (GPS US) announced its plan to spin-off its underperforming brands. Under which the company intends to separate into two new companies. The original company, Gap Inc will keep ownership of their lower priced fast fashion brand Old Navy while the new company will focus on revitalizing the company’s mainstay brand Gap and other major brands such as Banana Republic, Athleta, Intermix and Hill City. However, the transaction is still pending final approvals by Gap Inc’s board of directors and SEC. But the company intends to complete the transaction by 2020.
Gap Inc’s share price rose more than 15% immediately after the news, but since then the price has fallen more than 24% despite a positive return from S&amp;P 500 during that time.

Source: Cap IQ

Source: Cap IQ

Gap Inc: Unlocking Value Through Old Navy Spin-Off and Restructuring of Speciality Stores