Larry,
Thanks for the link. It was a very interesting article. It will be even more interesting to see how this potential problem affects the computer makers.
Here is some more negative news:
On Friday, Oppenheimer (sp?) downgraded GATE to market perform, and said they would buy at $45.
S & P initiated coverage on GATE with a *** rank, or the equivilent of a hold. They stated that they believed Gateway was fairly priced. Their analyst also cut 4Q estimates by 2 cents, from 1.07 to 1.05. However, he left the fiscal '97 earnings the same. He set a 12 month price target for the issue at 65.
Doesn't this seem pretty darn bad! However, this is not entirely bad. Depending on how the market reacts in the short term, it could be ok. If Gateway does not get really beat up in the next week by all this negative news, it should be ok. Remember, since most brokerages now rate GATE as a hold, frmo here, it is only likely they will improve their ratings!!!
Hopeful that GATE doesn't bomb,
Brian |
