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

To: Mr. Stocks who wrote (6113)	7/14/1998 12:13:00 AM
From: Kory	Read Replies (1) \| Respond to of 8002

Nice analysis - keyboard sales down, so look for a big drop. It has been widely documented for months by Compaq and others that there was a glut of PC's in the channels. If you don't believe me, check out the disk drive sector. Fortunately Dell and Gateway (the last 6 months anyway) have been relatively immune from the inventory curse as the direct model has been very successful. Even so, the two combined are a fraction of the total computer market. Gateway would have likely pre-announced by now if they were going to substantially miss earnings. My guess is that they will beat estimates by a few cents, but the stock will probably then dip as Wall Street then focuses on second half of the year uncertainty. Even so, it would make three straight quarters of superior earnings and cash flow for GTW, which is more than I can say for most of the tech sector. I'll continue to hold throughout, and let you make the wagers.