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

To: Kathleen capps who wrote (6164)	7/23/1998 6:41:00 PM
From: IceShark	Read Replies (3) \| Respond to of 8002

Kat, I modified my post a little so re-read it. First, I don't know how they are recording the transaction since it only started a month or two ago and we will need the 10Q to figure out what is going on, and we might not be able to tell anyway. But it should be a financing lease - so sale, up front and associated profit reflected up front, but with a portion of the monthly $50 payment allocated to internet revenue. Of course a portion of the $50 payment will also be interest income to be offset by cost of financing. I don't know if they are off loading these financing leases or setting up a financing sub. Hell, I don't even know what happens to the box at the end of the "lease" - I think you probably turn it into the local scrap electronics dealer to salvage the circuit gold and silver. -g- Some work to do here. In any event, these are definitely sub-$1,000 boxes, financing is not exactly a high tech business deserving XX multiples, maybe they figure they can call themselves an AOL internet business and fly high? Regards, DWW