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Technology Stocks : Gateway (GTW) -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (4954)	12/5/1997 8:33:00 PM
From: Brian Lempel	Read Replies (1) \| Respond to of 8002

Skeeter, You are right on our disagreement. What you call a shift in industry conditions I see only as poor management on the part of GTW. First of all, I don't think your example of HWP is a very good example. For the past two years, their computer business has been aweful. It is only now starting to come back. Theirs was a problem of a poor product mix and poor quality. I think the real problem here is that there is no true comparison to be made between GTW and another boxmaker. MUEI is a small name, has low recognition, and not too much market share. They will be the first to fall due to market share erosion. CPQ has a totally different product mix. DELL has a different focus. GTW is the only company whose focus is to provide middle and high end systems mostly to the consumer. I will repeat that the main issue should be whether GTW can return to its former level of efficiency. We know that lowered prices on the part of DELL and CPQ have not hurt their profitability. They would not have hurt GTW were they as efficient as 9 months ago. If they come remotely close, they will blow ou the estimates. Sales have grown in the 30% range YOY, but estimates for the 4th quarter are significantly lower than last year's. I think it's more a question of when they will return to higher profitability, not whether. What do you think? Brian P.S. My web site will be up and running in just a couple weeks (hopefully by my Christmas break on the 20th). You can see my hobbies, pictures, and stock picks!

To: Skeeter Bug who wrote (4954)	12/5/1997 10:59:00 PM
From: DWW II	Read Replies (1) \| Respond to of 8002

Skeeter, I think your right about the industry and the comparison between GTW and MUEI. I feel that GTW sells quality systems that have won a lot of awards & recognition lately. So, I feel they are selling volume right now. I know that GTW has fired executives and hired some very quality people to turn around the company. So, my theory is that they will come in with a great 4th Qtr. and then fade for the year. I'm going to sell right beforn the earnings anouncement if the price is above $38.00, or right after their announcement as I feel that it will be strong. $38.00 before would be good for me. I purchased at $31.50. If it is not up there I will hold untill after the announcement. Then I'm out until the next warning or correction or both. I won't get back in until I see it v. cheap. DWW II