Alan,
I'm not sure about exact numbers. Since component costs are always fluctuating, you never really know. Obviously, on the more expensive machines, they make more money. In general, I think that their portable products have the highest profit margin. This is good, since in the 3Q, portables sales accounted for a record 10% of sales (I think, but this might be 10% of revenues or earnings).
What a horrible trading day for GATE!!!!!! IS it true that Lehman downgraded GATE? From what to what, what was the reason, and what is your source?
I would think that this is a bad time to sell GATE. With these good earnings, and the almost 10% drop in price, the p/e must have returned to more normal levels. Since it was really never overvalued, I would look for GATE, and the whole sector, to make a comeback. There is no reason why stocks like GATE and CPQ and HWP should remain this low.
Brian |
