The Gap GPS (NYSE), the struggling clothing retailer, is expected to announce quarterly earnings today after the close of the markets.  One potentially positive note is the new vigor and style Gap’s newest designer, Patrick Robinson, has infused into the Gap’s fall collection.  According to a story by Eric Wilson in the International Herald Tribune,

Robinson, 41, is the third designer to attempt to pull the sword from the stone since Gap began to publicly acknowledge its creative personnel in 2003, and the most closely watched because of his popularity with industry insiders and his finesse with casual American sportswear. His fall designs have generated promising reviews, but also concern about whether a single designer – one with a mixed track record – can revive a brand with 1,155 stores in the United States in the midst of an economic crisis.

Robinson’s input into design for the Gap was followed today by the company’s announcement that acting President Tom Wyatt of the Gap’s subsidiary Old Navy who had temporarily replaced Dawn Robertson as president back in February was formally made the President of Old Navy today.  According to the company’s press release,

“In the last six months, Tom (Wyatt) unified the organization and brought renewed focus to our customer target, while making the tough changes necessary to get the brand back on track,” Gap Chief Executive Glenn Murphy said.

Glenn Murphy, the Gap’s CEO, has been working feverishly to find a formula that could work to turn the retailer’s fortunes around.  It’s tough right now, but maybe, just maybe, he has a real winner with the Gap’s newest designer.  Old Navy on the other hand, is a far more difficult situation.  Stay tuned expect more to come both good and bad.

Purdayn Filter Technologies, Inc. (OTCBB: PFTI) signed its first contract with the U.S. army at the end of last month.  The contract is meant to supply 70 puraDYN® oil filtration systems for the Joint Explosive Ordnance Disposal Rapid Response Vehicle (JERRV), which is part of the family of vehicles commonly known as MRAP (Mine Resistant Ambush Protected). This vehicle is considered an “urgent” need, and is getting significant support from Congress.

According to the people at Puradyn the puraDYN® oil filtration system is the most effective bypass oil filtration product on the market today.

To read more about Puradyn, read the TWST interview with CEO Joe Vittoria. 

Struggling office supply company, OfficeMax OMX (NYSE) announcedthe resignation of its CFO, Dan Civgin effective August 29, 2008.  Civgin had been OfficeMax’s CFO for nearly three years.  Shortly after today’s announcement of Civgin’s resignation, Allstate Corporation ALL (NYSE) announced Civgin would be joining the company as its new CFO replacing acting CFO, Samuel Pilch.  News of Civgin’s resignation put further downward pressure on OfficeMax’s stock which had been trading in early 2007 around $55 dollars.  Today the stock was trading at $11.93 down from its initial open.  Civgin an experienced CFO who prior to working for OfficeMax had served as CFO for General Binding Corporation.  He will join Allstate as CFO and Senior Vice President on September 8.  Allstate has also been suffering of late and appears to have made a solid choice for its new CFO.For more:Chicago TribuneMarketwatchTradingMarkets

As Motorola MOT (NYSE) continues to struggle and find ways to right itself, more executive changes are afoot. Dan Frommer of the Silicon Alley Insider wrote a short piece today on the latest changes at Motorola’s struggling cellphone division.  According to Frommer,

Rob Shaddock, the SVP responsible for consumer mobile products, has resigned.  … His replacement: John Cipolla, a 30-year Motorola vet, will lead consumer products and report directly to new mobile devices CEO Sanjay Jha.

There are likely more to come.

Our top 4 picks this week come from Alta Capital Management, a management firm based out of Salt Lake city. Alta Capital specializes in blend of value and growth investing they call “Qualty Growth Investing”. Here are their top 5 picks this week:

1. Transocean Inc. (RIG)- “We think the rig space in general is attractive right now, but one of the things we like about Transocean’s business model specifically is the fact that it is the largest provider of deepwater rigs, which should continue to have the highest growth in terms of average dayrates.”
2. Alcon (ACL)- “Alcon is the US leader in eye care pharmaceuticals, surgical equipment and other products. It sells everything from drugs for glaucoma to contact lens solution. Alcon’s business is extremely attractive relative to other healthcare names due to the
   fact that its pharmaceutical segment faces virtually no generic competition in the near future, and the company’s fortunes are not tied to any one product.”
3. Lincoln Electric (LECO)- “Lincoln Electric is a leading global manufacturer of welding and cutting products with very diverse end-market exposure. With 50% of its sales overseas, in countries like Brazil, China, India, and Mexico among others, we believe it to be an attractive play on the building of infrastructure worldwide.”
4. Mindray Medical International (MR)- “It is a leading China-based medical device maker focused on manufacturing and selling products across three main lines of business: patient monitoring and diagnostics, in-vitro diagnostics, and diagnostic imaging. Mindray’s margins are trending upward nicely, due to the fact that it can sell its products at an average 30% discount to its international peers.”

For the full interview with Alta Capital Management, including a complete overview of their investment philosophy, sell strategy and more stock picks, click here.

Lisa Biank Fasig wrote a piece that appeared in the Business Courier of Cinncinnati that talked about growing speculation about Procter and Gamble’s PG (NYSE) highly regarded CEO, A.G. Lafley.  Lafley has thrived as the company’s CEO but he now is in his 60′s and has completed the acquisition and integration of Gillette and thus, the firm may be getting ready for a possible successor.

Arena Resources Inc. (ARD) reported their earnings last week, and they had a great second quarter. For the three month period ending in June 2008, their oil & gas revenues were up 188% from the same time last year, and 181% from the sixth month. In addition, the company has seen a significant increase in a net cash flow and the development over 50 new oil wells.

To find out more about how Arena Resources achieved these results during this turbulent economic time, read this week’s interview with  current CEO Phillip Terry. 

Business Week recently provided a quick and useful video of a presentation by Beverly Behan, Managing Director of the Hay Group entitled, Finding and Choosing a new CEO, How a board avoids CEO succession issues. Check out the video. 

This week our off the record comes from analysts and CEOs dealing with oil and gas drilling and exploration. Here’s what the people we interviewed picked this week:

The most popular name this week is the company Chesapeake Energy Corp (CHK). 3 Analysts and a CEO had this company as their top pick:

“[Chesapeake is] a phenomenal story — a company that was on the verge of bankruptcy in the late 1990s today is one of the largest energy companies in the US, certainly the largest natural gas company.”

“I think that among North American focused companies, Chesapeake, led by Aubrey McClendon, has just really led the industry in not only accumulating acreage that is turning out to be extremely prospective, Haynesville being a great example of that, but also is just emerging as a dominant force for growing the domestic gas supply.”

“Chesapeake I would certainly have toward the top of my list. I think Chesapeake has probably been the most visionary of the managements in this group.”

“Aubrey McClendon in his own way (although very controversial and not always that consistent I don’t believe, in terms of some of what he indicates and then what he actually does — which is a negative) has been very farsighted and proven that over the years in terms of not only the gas theme but also in terms of the resource play concept.”"

For the complete Off the Record report, including a compelling variety of stock picks disclosed anonymously by industry professionals, click here.

As the news  General Motor’s performance and sales continues to send tears down the cheeks of General Motors’ shareholders, I find myself in a surprising position. I am in total agreement with Henry Blodgett, the former analyst and now successful writer in chief, CEO and co-founder for New York City’s Silicon Alley Insider.  While I was on vacation last week, Blodgett wrote a short piece about the horrendous job Wagoner has done for GM as CEO and the surprising fact that his board continues to provide him with “solid support”. The piece appeared in the Huffington Post.   According to Blodgett,

In the past three and a half years, General Motors (GM) has lost more than $67 billion. In the past eight years, the company’s market cap has dropped by $37 billion. Add the two numbers together, and GM’s shareholders have lost more than $100 billion so far this decade.

I rarely find myself in agreement with Blodgett, but his views on Wagoner and mine are exactly the same.  If you are interested in GM or the auto industry, I suggest you check out Blodgett’s piece and the other journalist stories he refers to.