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Chinmoy, I agree that Gateway is the weakest of the three and it is
now selling at a silly valuation, given its lousy balance sheet, and
perceived poor quality. However, I think MUEI is even more overpriced
and weaker than GATE, which is why they are raising money while the
suckers have pushed up the stock price. Compaq and Dell are selling
a lot to business, but, then, that has always been their big markets.
I don't think that market is growing quickly and all these "sales" by
Compaq are just stuffing the distribution channels. Dell, meanwhile,
is gaining market share with its lower prices, but now that other firms
have responded to those prices, and components have little absolute
downside left, margins are going to get whacked in the growth
environment they now predict. MB |
