Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: MJ who wrote (2336)	11/29/2004 3:21:48 PM
From: Walkingshadow	Read Replies (1) \| Respond to of 8752

Gateway tgt raised to $8 from $7, reit Outperform -- Piper Jaffray (GTW) 5.90 : --Update-- Firm raising their tgt to $8 from $7 based on continued strong execution of its retail PC strategy, unfolding consumer electronics (CE) strategy, strong operating expense reductions, and resulting operating leverage... also see 07:06 update for positive Barron's story Gateway's turnaround accelerates - Barron's (GTW) 5.90 : Barron's reviews the story on Gateway, which has been showing some clear signs of life. Thanks to a revamped strategy and reduced costs, the shares are up 48%, since Barron's raised the possibility of a turnaround 3 months ago. While the stock remains speculative, it could head to 7 if the improvement continues. "We are on target, on plan," says CEO Wayne Inouye. "A lot of work remains to be done but we are now finally on the right track." Gateway is under new mgmt and has adopted an altogether different strategy. After its March acquisition of eMachines Gateway has overhauled both its product line and its distribution strategy. Gateway now sells PCs mainly through such top retail chains as Best Buy, Office Depot and CompUSA, competing head-to-head with models from H-P and Sony. The co does appear to be gathering momentum. It will start selling through more retail chains in the coming months, not only in the US but in Europe and Japan, suggesting that unit sales growth could accelerate. At the same time, the evidence suggests that costs can and will be cut further. Inouye is aiming for a cost margin of under 7%, the level for eMachines. Despite the shares' recent runup, they still trade at just 0.61x sales for the trailing 12 months, versus 0.76 for H-P and 2.15 for Dell. With some luck, they could prove to be as much of a bargain as an eMachines computer. 29-Nov-04 05:05 ET Barron's Summary : Gateway's (GTW) turnaround accelerates...