To all:
I found this item in the CPQ thread:
Gateway Shares Could Fall on Failure to Enter
Low-Price Market
Bloomberg News
May 3, 1998, 3:33 p.m. PT
North Sioux City, South Dakota, May 3 (Bloomberg) -- Gateway
Inc. shares, which rose last month after the company was listed
in the Standard & Poor's 500 Index, could fall on Gateway's
failure to enter the low-priced computer market and slowing
computer industry sales growth, Forbes reported in its
''Streetwalker'' column. Money manager William Fleckenstein, a
short seller, predicted that the shares would drop to 25 within a
year, a 57 percent decline. It's doubtful that Gateway can
compete in the low-priced computer market with established
companies like International Business Machines Corp., Compaq
Computer Corp. and Hewlett-Packard Co., the magazine said, citing
Piper Jaffray Inc. analyst Ashok Kumar.
Dataquest Inc. said the worldwide PC market increased 14
percent in the first quarter, while International Data Corp. said
it grew 10 percent.
(Forbes 5/18 318 www.forbes.com)
--Dylan Gallagher in the Princeton newsroom (609) 279-4028/shw
In light of the fact that it appears that DELL Does not have any low end entry PC's (correct me if I am wrong), why should this be a problem?
All comments would be appreciated.
David |
