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Paul, I am going to give out the longer version piece by piece so it
doesn't get deep-sixed again by the submit genie. -G- I think Gateway
is the layup of the group, assuming you can still
get puts at Friday prices. This one competes directly with Dell, a
vicious competitor, GATE has a shaky balance sheet, they have just
posted their last good quarter of the cycle, they have a rep, deserved
or not, for poor quality,
and they are selling at a 52 week high and a pe ratio that is
unsustainable for a cyclical company at the top of the cycle. I don't
usually play boxmakers, but I will take a shot at this dog now that the
bulls have totally missed the significance of their last eps report.
The other stocks are much riskier, IMHO, because they all have a lot
of investor good will and they rally at even the shakiest of
good news. I like Shiva mainly because it is selling at more than
100 times eps, which shows true gullibility on the part of the funddumbs.
With Cisco becoming more of a competitor every day, they will not be
able to grow into that pe ratio, IMHO. Also, I think the entire
networking group is
due for a shakedown and the most overpriced will get
hit the hardest. As the stock is 31 percent down from its high, I
only have a third position now, but I will add more if this suckers'
rally continues. MB |
