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

To: yard_man who wrote (6043)	7/1/1998 8:32:00 PM
From: Kory	Read Replies (1) \| Respond to of 8002

Gateway's forward looking PE is something like 25. Even I, as a long term holder, believe that is rich, but it is middle of the road for the market conditions today (S&P 500 at an PE average of 29). Given Gateway's above average earnings prospects and huge positive cash flow, the market could easily push this stock significantly higher if GTW nails the second quarter, which appears likely. That would be the third straight quarter of strong earnings, and on Wall Street, arguments will begin to be made that Gateway has mastered the direct sale concept in the same manner as Dell. I originally was underwhelmed by the Gateway stores and the YourWare program. However, in talking with several people in the blue collar town in which I work, I like the idea more and more. Both concepts allow Gateway to reach out to the novice, WalMart type buyer, without the carrying cost. And with income gains shifting to workers from Corporate profits, I like the retail market going forward. Don't know where Gateway will be in the next few weeks, but I like the outlook for the remainder of 1998.