News Alert from Reuters via Quote.com
Topic: Gateway 2000 Inc
Quote.com News Item #3867442
Headline: Gateway (NYSE:GTW) shrs fall on worries about Q3
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NEW YORK, Sept 2 (Reuter) - Shares in Gateway 2000 Inc
slipped in late activity on Tuesday amid rumors the company was
experiencing a disappointing third quarter.
Traders said the worries gained momentum on word that
Gateway had pulled out of a PaineWebber analyst conference
scheduled to take place tomorrow (Wednesday) in Texas.
"It's all over the street," said one trader. "Gateway was
definitely scheduled to be there and people are looking at
(their absence) as if something's wrong with the quarter."
PaineWebber declined to comment on the rumor, but a source
at the firm confirmed Tuesday that Gateway had dropped out of
the conference.
PaineWebber declined to comment on the rumor, although a
source from the firm confirmed Tuesday that Gateway would not
be attending the conference.
Representatives at Gateway were not available for comment
and answering machines at the company's communications office
were not accepting new messages.
NEW YORK, Sept 2 (Reuter) - Shares in Gateway 2000 Inc
slipped in late activity on Tuesday amid rumors the company was
experiencing a disappointing third quarter.
Traders said the worries gained momentum on word that
Gateway had pulled out of a PaineWebber analyst conference
scheduled to take place tomorrow (Wednesday) in Texas.
"It's all over the street," said one trader. "Gateway was
definitely scheduled to be there and people are looking at
(their absence) as if something's wrong with the quarter."
PaineWebber declined to comment on the rumor, but a source
at the firm confirmed Tuesday that Gateway had dropped out of
the conference.
Representatives at Gateway were not available for comment
and answering machines at the company's communications office
were not accepting new messages.
The concerns about Gateway's quarter come as the company
faces heightened competitive pressure from fellow computer
direct marketer Dell Computer Corp (NASDAQ:DELL), which last week
unveiled plans to increase sales to home users, Gateway's
primary market.
"They're running up against Dell and their third quarter is
being called into question," said a second trader. "And
investors aren't going to tolerate anybody whose third quarter
is being called into question."
Gateway shares fell 2-3/4 to 36-3/8.
Gateway's losses were particularly noticeable given the
broad market's sizzling gains. The Dow industrials stood at
7821, up 199 points in late afternoon and the Nasdaq Composite
jumped 27 points to 1614.
Personal computer makers were broadly higher, with Dell up
1-11/16 to 83-11/16, Compaq Computer Corp (NYSE:CPQ) up 3-1/8 to
68-5/8 and Hewlett-Packard Co (NYSE:HWP) up 1-13/16 to 63-5/16. |
