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

To: Mr. Stocks who wrote (5444)	2/23/1998 10:25:00 PM
From: Mr. Miller	Respond to of 8002

You can't see those same swings in DELL's chart because the splits have tightened the swing history. Right now, GTW is at the same point DELL was around October/November 1996. Look it up, read the posts on that thread in that time period, look at their fundamentals then. It is the exact same scenario as GTW now has facing them. GTW has a bright future. I am not trying to compare DELL to GTW right now, since it is very obvious that DELL is the leader of the pack. I also can't argue with your insight into share price peaks last year. They screwed up, but that is over and done. Let's move on to today. I am looking at comparing historical increases in revenues and earnings. I referenced this before. Not the best indicator I know, but if you want to talk competition, we can sure try to debate. For starters, it is clear that GTW and DELL are the leaders in the direct marketing scheme, with DELL way out ahead right now. CPQ came into the game of direct marketing in 1997. Are they bigger than GTW in this arena? Even if not, they are much bigger overall, which definitely gives them a solid edge. I see in PC magazines and online sites that DELL and GTW consistently top the charts with the best computers available for the best price. In fact, GTW has the better computer right now with the 333MHz chip, but it is a bit pricy without a few options like a modem. Who's better? DELL has the bigger share and is on fire right now, and will continue to be until further notice. I believe that GTW's number 1 customer service combined with excellent products and improving inventory turnover will allow it to grow at the rates similar to what DELL has seen. This is only my opinion. I do not believe for GTW to succeed, DELL has to fail. Both have been doing well and will continue to do so. I do not think it is logical to think that GTW will lose market capitalization simply because you want it to. DELL has the distribution channels, the efficient plan, and the lead. They will still rise, but their return will not be as much as GTW's over the next 2 years. DELL is 5 quarters ahead of GTW. Mr. Miller