You are definitely correct when you say that that RAM prices have hit rock bottom. While there may be a slight increase, it shouldn't affect margins too badly. Newer add ons, like the Recordable CD drive, Jaz drive and better sound systems, should push the average price up. I don't know where I heard this (maybe in GW2k mag. or on here), but traditionally, Gateway customers buy larger, more expensive systems.
I am really not sure about the short term direction of Gateway. With a p/e ratio of only 19, there is definite room to move up, but earnings downgrades which will start to come out will probably depress the stock price at least until earnings come out. After that though, I have no doubt that we will see 60!
Brian, LONG GATE |
