Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: kahunabear who wrote (6317)	7/28/1998 11:05:00 AM
From: Kory	Read Replies (2) \| Respond to of 8002

You know, I am getting tired of responding to disinformation from people on this board. The latest: <If you take their best quarter ever and annualize it, you still get a ridiculous PE.> Okay, if I take the $.59 that GTW reported in the 4th quarter (I can be seasonally unfair as well, tippet, but only because whipsaw asked me to), multiply by four (that's annualizing for slow folks), and take the current share price of $58 by the result, you get a PE of: 25 This very well may be high by historical standards and I agree that Gateway is in a higher risk industry right now. But please check out the S&P 500 which is trading at a PE of 29 right now. Or check out Coke or Microsoft or Gillette all of which are over 40. Not to mention the internet stocks at uncalculable PE's because they never have made money. Gateway obviously could fall on it's own, or definitely will if the market crashes as a whole, but it's current valuation is actually less insane than the average stock out there.