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

To: yard_man who wrote (5770)	4/22/1998 9:31:00 PM
From: phbolton	Read Replies (1) \| Respond to of 8002

Excerpts from an interesting article that I more or less agree with The price collapse of PCs has been breathtaking. In the consumer market in 1997, average selling prices plunged from $1,642 to $1,169, a drop of 29% according to Computer Intelligence. We are seeing the same size drops in the corporate market thus far in 1998 as the price wars spread. Wall Street appears to be the most myopic regarding Gateway and Dell, vendors who have professed no interest in the sub-$1,000 market. They plan on continuing to sell high priced PCs with better margins. Good luck. Both stocks are near all time highs even though Gateway stumbled in three out of the last four quarters. Gateway sells at 57 times earnings, Dell sells at 46 times earnings. Dell's market capitalization is $45 billion, a staggering 30% of total worldwide PC sales of $150 billion. stocksite.com has gateway stumbled again? stay tuned tomorrow after closing. GTW is twice what is was a year ago and this quarter's EPS is predicted to be the same as last years.