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

To: Skeeter Bug who wrote (5498)	3/5/1998 4:51:00 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 8002

fair value in the future will be $13. Now that's what I was talking about. What basis, if any, do you have for this conclusion? Your dire warnings have no credibility and never will unless you can explain a rational basis for them. ignore the signs at your own risk. I ignore highway billboards too, unless they offer information I need. I really should learn to ignore pests too. It's just too tempting to swat them, but that just tends to make them more annoying.

To: Skeeter Bug who wrote (5498)	3/5/1998 5:00:00 PM
From: Dave Gahm	Respond to of 8002

Skeeter, I agree that an overall PC market slowdown will not leave GTW unscathed. While they are able to manage inventories much better than CPQ or IBM, they will certainly be impacted by the discounting that will occur as the channel is unstuffed. We have already seen a big erosion of GTW's price differential advantage, and slower growth coupled with a shift to lower priced PCs will certainly make it worse. In comparing prices on top-end PCs I have found that DELL is about 5% cheaper than GTW, and that CPQ is about 5% more. At the low end of the market GTW has no price advantage over HWP or CPQ. You can buy a complete 233 system at CompUSA for less than GTW's $1499. Anybody have a feel for when GTW would pre-announce...assuming of course that they will have a disappointing quarter? Dave