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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: vip who wrote (53606)	7/23/1998 7:01:00 PM
From: Billy	Read Replies (4) \| Respond to of 176387

DELL's goin' up tomorrow, bit time ! It's the only big pre-earnings PC (and possible split) play left for the next month. Sure GTW's earnings were not that great, BUT they beat the whisper number by a penny. I can hear the DELL shorts squealing now. I really think this stock will be $140+ by earnings announcement date and headed towards $160 post earnings/split announcement.

To: vip who wrote (53606)	7/23/1998 7:06:00 PM
From: D.J.Smyth	Read Replies (1) \| Respond to of 176387

Actually, Gateway's 2% increase in SG&A amounts to $.25 in earnings per share. Their SG&A increased from 13% to 15% from year over year and sequentially. The increased SG&A is considered, according to the CEO, an event to beef up the company. Generally such events are one time percentage differentials. Had they kept their SG&A increase at even 1/2% less, they would have handily beat earnings. So the bottom line is that the SG&A will move back to the 13% level for the upcoming quarters. It was SG&A that caused their earnings shortfall, not lack of revenue production. It was expected total revenue this quarter would be approximately $100 million less than last quarter, so their revenue came in line. what analysts didn't pick up on was the approximated increase in SG&A. Had they kept their SG&A at 13% as in nearly all previous quarters, they would have earned $.63 a share.