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

To: Ramsey Su who wrote (5749)	4/20/1998 10:30:00 PM
From: phbolton	Respond to of 8002

Ramsey: I am out of Wind currently, have bought/sold three times for good gains. Think it is a good company but the stock is fairly priced but still follow it and will buy again if it falls below $30. Like IBM I think the PC business is "terrible" at the moment and not much better in the future. The market seems to be separating into a low volume high end and high volume low end. The processor power is already here to keep the low end happy (ie if my laptop was infinitely fast it wouldn't make any difference for what I use it for but I want every extra smidgen of speed for my desktop). Don't know who is going to win in the long run. CPQ apparently wants to become IBM and is willing to trade lower growth for more diversification which seems reasonable to me. Dell and GTW seem vastly overpriced to me. P/Es of 50+ for what are basically commodity companies with projected market growth of 10-15% with falling ASPs and a price war? Also, the "PC on a chip" of AMD and soon from others will plummet ASPs and margins. Dell and GTW are as overpriced now, in my opinion, as Micron was at $90 a couple of years ago. Have a small play in GTW May 45 puts and will do it again if I'm wrong this month.