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

To: NicholasC who wrote (5838)	5/4/1998 12:04:00 AM
From: Dr. David Gleitman	Read Replies (2) \| Respond to of 8002

To all: I found this item in the CPQ thread: Gateway Shares Could Fall on Failure to Enter Low-Price Market Bloomberg News May 3, 1998, 3:33 p.m. PT North Sioux City, South Dakota, May 3 (Bloomberg) -- Gateway Inc. shares, which rose last month after the company was listed in the Standard & Poor's 500 Index, could fall on Gateway's failure to enter the low-priced computer market and slowing computer industry sales growth, Forbes reported in its ''Streetwalker'' column. Money manager William Fleckenstein, a short seller, predicted that the shares would drop to 25 within a year, a 57 percent decline. It's doubtful that Gateway can compete in the low-priced computer market with established companies like International Business Machines Corp., Compaq Computer Corp. and Hewlett-Packard Co., the magazine said, citing Piper Jaffray Inc. analyst Ashok Kumar. Dataquest Inc. said the worldwide PC market increased 14 percent in the first quarter, while International Data Corp. said it grew 10 percent. (Forbes 5/18 318 www.forbes.com) --Dylan Gallagher in the Princeton newsroom (609) 279-4028/shw In light of the fact that it appears that DELL Does not have any low end entry PC's (correct me if I am wrong), why should this be a problem? All comments would be appreciated. David