Gateway (GTW) Message Board

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Technology Stocks : Gateway (GTW)

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To: H James Morris who wrote (6448)	8/11/1998 9:46:00 AM
From: yard_man	Read Replies (2) of 8002

They borrowed quite a bit when they bought back stock. If things were so great why'd they have to borrow. I think it is getting close to the time to bet against even DELL's continuously increasing share prices. Will they continue to sell lots of computers? Will sales grow? Yes and yes, but will earnings grow percentage-wise from here -- I'm not so sure. DELL could just meet expectations or slightly exceed and sell off. Wait and see. Perhaps they will have done well by stealing market share from GTW and others? We know IBM hasn't done well. HWP hasn't done well. As the price per box moves down -- more folks can afford quality -- CPQ ahs supposedly cleared out the channel, eh? But are they increasing or losing market share? Lotsa questions, I know. One thing is for sure. Price per box is declining faster than before and margins are headed in the same direction -- down. This requires larger and larger volumes to keep the same absolute profits -- this trend, unless it reverses, does not imply higher valuations for any of the players. Must be why CPQ has gone another route -- not sure it's going to pay off, but DELL's stock looks very vulnerable. GTW is simply perched on the cliff -- it is only a matter of time.

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