skeeter, I am not bitter, just tired of people posting crap without checking facts. You seem to like making up statistics without ever checking there validity. When you simply "assume" things and call management liars, I feel the need to correct you.
Which I must do again, I am afraid:
<<anyway, in the time period gtw has grown eps by a whopping annual rate of 12-14%, the stock is up 150%.>>
In the 4th quarter of 1996, Gateways stock price hit 33 1/8 (split adjusted). At the 1998 year-end closing, that represents a 55% stock price appreciation in 2 years during which time GTW will have grown earnings about 28%. During that time GTW's PE ratio went from a 20, to the current 25.
I don't know where you get your 150% appreciation, except I guess if you are using the absolute low point in late 1997/early 1998 and the absolute high point in 1998, you can come close. But, if you want to use 1997's earnings (which I know you don't and I agree), then the price should have tripled this year. This obviously is nonsense, but then so is the 150% stock appreciation in two years quoted by you.
GTW does have serious issues to contend with. They are tiny in comparison to IBM, CPQ, and Dell. They are much more dependent on the home PC market and have struggled both internationally and in the business market. They have not managed growth nearly as well as Dell. They lack a lot of industry expertise and have had to move their headquarters in an attempt to get it.
If you care to seriously look at the company and evaluate execution and performance, I would listen. But when you simply make-up statistics and vent negative opinions, don't whine about being insulted.
Kory |
