Skeeter, I agree that GTW running independently will have some very rough roads ahead. However, if they partner with/or are acquired by a world leader in consumer electronics (read SONY) then they have enormous potential. GTW is a pioneer in the next major wave home entertainment centers with their Destination systems. I have invested in GTW primarily for that potential which I think will be huge. When most T.V.'s in US homes are digital, they are likely to computing/internet capability. This is still a few years off, but you have to give the pony tail man credit for this vision. However, I don't think they can make major inroads without a strategic partnership with the likes of Sony or its competitors. Therefore, I believe that an acquisition is a very real possibility. At the current market size, there aren't many companies interested in competing with GTW in this arena. In addition, it is not within CPQ's current strategic scope, nor long-term scope to be a consumer electronics manufacturer. That is where GTW is headed. They may even split into two companies if they remain independent for the next couple of years. One corporate focused, one consumer electronic focused. I still think an acquisition here is possible, and I'd be nervous as heck if I was short on this stock.
Regards,
Vince |
