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

To: Oeconomicus who wrote (5390)	2/17/1998 10:05:00 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 8002

rd, here goes: #1. gtw management stinks, imho. they make touty statements like in like a lamb out like a lion and then produce absolutely zero results. i don't like managements that i can't trust. oh, and i love their thorough analysis of how sg&a expenses went down last q. hmmmm. maybe it will pop back up... surprise, surprise... #2. prices are falling in the pc industry much faster than the box makers can produce increases in revenues as a WHOLE. sure, cpq can increase units by 50% and revs by 50%, but not everyone can - and i wonder how long cpq can. #3. cpq and dell have done a great job. cpq is a premier mnftr and dell has done a masterful job of marketing. gtw and muei posted losses while cpq and dell were minting money. in fact, just about every pc mnftr was near breakeven or posting losses last year. muei, gtw, apple, and lots of others. toshiba left the industry. why? of course, because the industry is just like it was before dell went up 10 fold. of course. what was i thinking... #4. the pain has been delayed for one reason. components like dram (i hate mu much more than gtw) and cpus have tanked. especially the cpus. intel's competitors are now competing with intel. the p200 to pii 300 leap is much, much, much less than the 386 to 486 leap or 486 to pentium 133. #5. pc growth is slowing and dell and cpq know they must increase units upwards of 50% to compete. prices keep falling. the best, most able mnftrs and, to a lesser extent, marketers will succeed. gtw is neither. #6. the ytk problem money will soon be taken out of everyone's pc budgets leaving a vacuum in the business market. not good for predatory companies that want to increase units 50% a year. even worse for competitors like gtw. hope this helps a little.