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

To: sol dude who wrote (5349)	2/11/1998 4:48:00 PM
From: Oeconomicus	Respond to of 8002

sol, re "at the starting gate", I agree. The bears here seem to be focused on past disappointments and can't seem to see that the valuation here is really quite reasonable. At today's close, GTW is trading at about 20 times this year's earnings estimates (and those estimates do not yet reflect the 31% positive surprise in the Dec Q). Estimates for 1999 show a 34% EPS gain over '98. Furthermore, price-to-sales is only about 1x. HWP, CPQ and DELL trade at 1.6, 2.2 and 3.7 times sales. Actually, I think we are only approaching the starting gate. Most of the analysts are still at "hold" or "moderate buy". Get through the old high of $46 1/4 and the rest will finally decide this is for real. Then you see revised estimates and price targets and it gets really fun. Good fortune to you, Bob