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

To: DWW II who wrote (5421)	2/20/1998 6:31:00 PM
From: jim kelley	Read Replies (2) \| Respond to of 8002

DW GTW is likely to be one of the first of the companies to get killed if a price war were to develop in the PC industry. GTW does not have the efficiencies of DELL as has been demonstrated this past year. A price war would put the entire PC industry into the P/E tank with the exception of INTC. It would also probably sink a lot of the retail channel and delay the development of the top end server and workstation market for want of funds. Because DELL is highly efficient most of its costs are variable costs and it could adapt better to a price war than CPQ, HWP or IBM. These company have a higher percentage of fixed costs. Hence, a price war is not the way to get DELL. A better way would be to just buy their stock.