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Technology Stocks : Gateway (GTW)
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To: jas cooper who wrote (4729)11/14/1997 12:07:00 PM
From: wolfdog2  Read Replies (2) of 8002
 
Jas, imho, the market place has changed and is leaving GTW in the dust. The big players are discovering that, hey, with the internet its easy to sell direct. The big players have also discovered that the growth on the consumer side is in computers priced under $1000.

Gtw is trying desparately to break into the corporate world because they are fully aware that the consumer side has become commoditized. The big four are gaining market share at the expense of the little fish in the corporate area (in the corporate pond GTW is a little fish). If you're purchasing for a big company, you look to someone who can provide not only end to end solutions, but someone with a reputable name so that you don't get criticised fi the system breaks down. GTW is barely known in the corporate world.

GTW's attempts at beefing up the consumer side are imho going to pump up the expense side without sufficient off-setting revenues. Bricks and mortar cost money. So does becoming an ISP. To make matters worse, GTW has zero expertise in these areas. I don't think they are going to get much bang for their buck in these areas. But I think the income statement will get a few shocks, which imho are not fully discounted by the stock price.

As to their customer service, you are right I could have kept trying and trying and trying. I have better things to do with my time. What kind of service is it that 1) won't let you stay on hold and 2) hangs up without telling you when to call back? In my book that's p*ss poor service. Sure I was willing to pay more for their service. But it ain't smart business to gouge your customer. That's just what GTW did to me. Once. They won't get a second chance.
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