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

To: Skeeter Bug who wrote (5013)	12/9/1997 8:51:00 AM
From: troy halle	Respond to of 8002

Looking at the past 3 mo this looks like a good time for some march puts. Should drop after xmas sales.

To: Skeeter Bug who wrote (5013)	12/9/1997 11:40:00 AM
From: Kathleen capps	Read Replies (1) \| Respond to of 8002

SB - reason for GTW rise?? BTW, it's that time in the quarter for GTW to warn or rumors to fly (based on last two quarters). ...Gateway 2000 Inc. shares rose amid expectations that the direct seller of personal computers will have a robust holiday season without having to cut prices. Gateway 2000 shares climbed 2 3/4 to 32 after analyst Matthew Russo with Sands Brothers & Co. told the brokerage firm's sales force that Gateway 2000's fourth-quarter sales are going well and the company's average per-unit price isn't likely to fall from third-quarter levels. ''Sales have been strong, especially at the $1,999 to $2,499 price points,'' said Russo, who has a ''strong buy'' rating on the stock. Russo's comments, combined with similar positive remarks from competitors including Compaq Computer Corp., reassured investors that Gateway 2000 hasn't been forced to cut prices to compete with entry-level PCs sold in retail stores for $1,000 or less. The North Sioux City, South Dakota-based PC maker's shares have fallen more than 45 percent since July as the company reported lower-than-expected earnings because it misjudged demand and had to write down the value of high-priced inventory. Russo declined to say how he obtained information about Gateway 2000's fourth-quarter sales. He said call volume, or the number of customers calling in to order PCs, ''has been going very well'' so far in the quarter. Gateway 2000 is expected to earn 44 cents a share in the fourth quarter, according to the average estimate of 18 analysts surveyed by IBES International Inc. That estimate is down from more than 65 cents a share this summer, before Gateway 2000 warned of disappointing third-quarter earnings.