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

To: jim kelley who wrote (5422)	2/21/1998 9:27:00 AM
From: D. Swiss	Read Replies (2) \| Respond to of 8002

I wonder why Dogway-I-mean-Gateway isn't moving in tandem with Dell, at least a little bit. It seems a little undervalued to me in relation to the other box makers and they seem to really be getting their act together (in the last qtr, they beat the est by 33%, inventory dipped 34% and they got their selling, general and admin expenses under control). I think the stock will be at 60 by the end of May, if they don't get taken over first). :o) Drew

To: jim kelley who wrote (5422)	2/22/1998 1:26:00 AM
From: Jet.Screamer	Read Replies (1) \| Respond to of 8002

Gateway's inventory turns for this past quarter where 20.7. Unless I am misinterpreting this statement, which if I am I am more than open to correction, that works out to turning inventory every 4.4 days. Dell stated that they turned inventory in 7 days which was a record for them. Although Gateway has been inefficient in the past I think this demonstrates that they are learning to play the game the way Dell does. Although one can argue that Gateway's inventory turns benefited from their tendency towards a strong fourth quarter which could increase their inventory turns if demand was greater than they anticipated, you cannot deny the reality that this greater demand says something about the image and loyalty that Gateway has in their market. Food for thought-the consumer who can spend $2,000+ on a computer is probably in an influential place in the corporation where they work. Likewise the corporate employee who uses a Dell computer daily must have some predisposition towards Dell. IMO-Gateway is too hard too judge at the moment although in terms of inventory management and product offering(servers) they look better now than they did a year ago and although they are not growing as fast as Dell they are still growing faster than the market.