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To: stockman_scott who wrote (166583)	8/22/2001 8:22:50 PM
From: OLDTRADER	Respond to of 176387

RE: GTW-Ted Waitt should call it quits and sell the remaining assets and distribute the cash and live happily thereafter-He caught a wave and will soon be beached-9.75 points to go for those brave enough to short it-

To: stockman_scott who wrote (166583)	8/22/2001 9:33:43 PM
From: BWAC	Read Replies (1) \| Respond to of 176387

"Computer Maker Gateway Cut to Junk" Interesting story and headline. And I'm not necessarily a GTW fan. But this strikes me as strange? What debt does GTW have? All in all this leaves me thinking what the??? Reading way down the article: Gateway has a $300 million unsecured bank credit line, including a revolving line of credit and a subfacility for letters of credit, but had not drawn on the revolving line as of June 30, according to a securities filing. So S&P downgrades debt which doesn't exist? At least until GTW draws on the bank line? Whats that about? Seriously? Checking GTW's 10Q we find this: 7. Long-term Obligations: On February 2, 2001, in connection with its strategic relationship with America Online, Inc. (AOL), the Company issued AOL a $200 million, 3% convertible note due December 22, 2020 at an initial conversion price of $33.676 per share which includes a premium. AOL may require the Company to purchase the note (at the par value plus accrued interest to date of purchase) on December 22, 2004, 2009, or 2014, payable in stock or cash, at the option of the Company. The Company, at its option, may redeem the notes (at par value plus accrued interest to date of redemption) any time on or after December 22, 2004. The Company maintains an unsecured committed credit facility with certain banks aggregating $300 million, consisting of a revolving line of credit facility and a sub-facility for letters of credit. As of June 30, 2001, the revolving line of credit facility had no amounts outstanding. As a result of the Company's restructuring and other charges discussed more fully in Note 10, the Company was not in compliance with a certain financial convenant of the credit facility during the second quarter for a period of time. The Company has obtained an appropriate amendment of this covenant. Management believes the Company's current sources of working capital will provide adequate flexibility for the Company's financial needs for at least the next 12 months.

To: stockman_scott who wrote (166583)	8/27/2001 12:08:13 AM
From: Selectric II	Read Replies (1) \| Respond to of 176387

Gateway's Country Stores are an anchor tied around its neck, IMHO. Worst of all worlds. High priced, fixed retail r.e. costs, trying to compete against not only Dell with its virtual, zero retail r.e. model, but also against e.g. HWP and IBM who have channels but not the cost of their own stores. The GTW Country Stores were admirable from the standpoint of trying to be customer friendly, but an absolute disaster from a cost standpoint. I think the retail stores could take Gateway out of the picture.