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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: mepci who wrote (169050)3/18/2002 6:01:13 PM
From: calgal  Respond to of 176388
 
Gateway's Caught Between a Box and a Hard Place
By Glenn Curtis
Columnist

Is Gateway (NYSE:GTW - news) worth buying at these levels? I don't think so.

Hold the email, folks. I realize that the well-known PC maker trades at a mere 1.1 times book value and at just 1.3 times cash. But the fact is, the company is in a pretty precarious position.

Industry demand, or lack thereof, is an obvious concern. But I am even more worried about its cost structure. For the company to pick up market share and drive unit growth above and beyond its break-even point of about 1 million units per quarter, it's going to have to seriously ramp up its advertising expenditures.

biz.yahoo.com