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

To: ratan lal who wrote (4960)	12/6/1997 7:37:00 PM
From: DWW II	Read Replies (3) \| Respond to of 8002

ratan, Let me start out by saying that you are right, I have an emotional relationship with GTW stock because I live 25 Mi. from the factory, and I know Ted's dad. He (his dad) was a cattle buyer back when IBP became a major force in the beef industry. His kid "Ted" got lucky or should we give him the credit he deserves and say that he had the foresight to see that (you could purchase components, put them together, and boom you have a computer). I also want to preface my comments by saying that I respect your point of view and I know that I do not know everything. But, I am an old dog that can smell a phesant before my dog does, and I can smell money. When you talk about Logic 101, I think you have a great grip on logic 101, but you also need to complete Marketing 101. The essence of Makreting 101 is that with proper positioning in a market, you (the company) can sell products for more profit than the commodity guys. It is your "Charge" as a marketing dept. to command a superior price because of your superior quality. Even if your quality is not better than the competition, by positioning, you can command a larger maring than your competitors. This is what GTW is doing right now. They have not lowered their price before XMAS because they do not want to distroy their image and they need to come in with major profit this Qtr. or they are dust. Logic 101 will tell you that this does make sense if you combine it with Mkting 101. GTW has not lowered its price because they do not have to. Even in the face of DELL recent announcement of lower prices, they (GTW) does not have to lower its price because anyone that wants a computer for XMAS would have had to order it by now or it will not be delivered before XMAS. If you were a XMAS customer, how would you feel if GTW lowered its price a week ot two after you ordered your computer. They need to protect their image. I guess you are going to have to trust me when I tell you that volume is there right now. Again, If you were purchasing a computer for yourself or a family member, would you (baring DELL)trust some of the new systems that are on the market right now? Why not spend an extra $200 or $400 to get DVD enabled. The reason I mentioned his Dad and my feelings of what is going on here is that we, the SUX guys that run together in spirit if not in Physical essence, think alike. What that means is that I think like they do. I can tell you (through contact of mentality & spirit) that as, dogs that run together, what will happen here is that GTW will come in at twice the street estimate. If the estimate is .44 it will come in at over .90. I agree that the challenges of the future are enormous. That is why I say I will get detached from GTW after they report in Jan. and waitt to see what happens. DWW II