Marc, I had not heard the MOT rumor. I heard CNBC say that CPQ would not comment as per policy. I cannot believe that anyone would buy GTW at a premium. Everyone is entering their field - CPQ, DELL, IBM, even CPU. They are getting squeezed by the $1000 PC on the low end and are not known for their high end boxes. I had a very slow 486 and tried to buy a GTW. They have one of the worst web sites and it is no better when you call them. I ended up buying a Compaq. I grew up in South Dakota! I wanted to buy from them, but they didn't make it easy. I even went to their store in Tampa. As I found out there, they don't sell things, they just demo them. The guy that showed me things gave me lots of misinformation. Based on all of the above, I shorted them, partially based on the beautiful head and shoulders formation on their chart, starting in May. It shows an initial downside target of 14. If they receive a buyout offer, I will short more. Anyone that looks seriously into this situation and does their due diligence will conclude that Gateway will not be one of the survivors in this highly competitive field.
Bob |
