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

To: yard_man who wrote (5898)	5/27/1998 11:53:00 AM
From: otter	Read Replies (1) \| Respond to of 8002

re: "No matter how you slice it this is a Company running for its life. Say hello to the 20's in less than 6 months from now." Why do you say that (I am truly interested in hearing your rationale)? In the interest of spurring conversation, I have several different observations: 1. Andy Grove, INTC, is reported to have said that 'only the paranoid survive'. In the technology business, it's good advice, in my mind. Any company better run for its life in this market or be killed without any regard for its current market position. 2. Leasing is nothing more than what Dell has been doing for a while. 3. As for the question of 'average wholesale' for used computers, it seems to me that what GTW is offering as a very good security blanket to home purchasers that might well increase sales enough to offset any additional costs of the program.(1) there is a market for used computer systems, (2) and prices are very low in that market. The key is to manage expectations in that market. One would assume that GTW would have an outlet lined up; or on the other hand, have a good plan for salvaging this equipment.