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Politics : Ask Michael Burke

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To: yard_man who wrote (25927)	2/11/1998 11:53:00 AM
From: Knighty Tin	Read Replies (4) of 132070

Barry, Can GTW make 50? Sure! Will it do so again? I don't think so. Reality will rear its ugly head and there isn't that much writeoff money left to help out the disastrous quarter we are currently in. First, several agencies have had their IT budgets frozen until they fix the Y2K problem. That will crunch GTW this year. Second, that is not a huge part of GTW's business. It is just the most consistent and results in some infrequent big orders that the bulls are dumb enough to believe a trend. GTW's growth is still the consumer market, and that just isn't happening for their overpriced boxes. The Country Stores have been a big, expensive mistake. I will bet that nary a one of them will cover their overhead. As Fred Hickey mentioned, GTW said those stores had "some good days" last quarter. You need more than a few good days in a 91 day quarter. -g- Of course, the company is capitalizing these startup costs, so the losses are being shown on the balance sheet, not the eps statement, right now. Until the inevitable write-off. The only chance I see for Gateway is if they beat up Dell and Compaq in the business market. And that happens right after Oscar de la Hoya whups Evander Holyfield. -g- MB

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