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Strategies & Market Trends : Roger's 1998 Short Picks
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To: Kip518 who wrote (12348)8/3/1998 11:36:00 PM
From: j lawrence  Read Replies (1) of 18691
 
Kip,

In the GTW ads that I have been seeing on CNBC and other cable networks, they keep talking about the ability of the customer to trade in a computer after two years. My question is what they are going to do with all of the computers that are traded in for new computers. They must be keeping their prices up in anticipation of the trade-ins.

Also, they are opening up all kinds of retail outlets. To their credit, they do not carry any inventory (other than about $50,000 in demo equipment) as they require the customer to call the order into South Dakota. However, the locations that they are placing their stores into - Fairlane Center in Dearborn, MI and Great Northern Center in North Olmsted, Ohio - are not in the low rent district. The stores are not particularly spartan.

I do not understand how they can do that in a low margin business which they are in.

Is there something that I am missing.

I have no position in GTW at this time.

JL
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