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

To: Kory who wrote (6320)	7/28/1998 11:21:00 AM
From: JCS	Read Replies (6) \| Respond to of 8002

Kory,based on the movement of the price of the stock there are a lot more people who agree with you than those who agree with the collective bears on this thread. We all know that the market trades on the prospects for the company in the future. Clearly the market likes what Gateway is doing. I do have a question for those knowledgeable in this business. What is Dell's competitive advantage over GTW that makes them so successful in selling to large businesses?

To: Kory who wrote (6320)	7/28/1998 4:29:00 PM
From: kahunabear	Respond to of 8002

Kory, I didn't mean to imply my mythical PE is any less ridiculous than any of those you mentioned. I think they are all too high. Plus, they aren't mythical. You are comparing apples to oranges. I was trying to look at a best case scenario, which they don't seem to be anywhere near currently. The numbers still seemed high to me. Just my opinion. Not disinformation. I personally think the pc business is a cyclical commodity business. It has been a while since the last down cycle, but I think it will be very painful for many companies when it hits. I think that the PEs for the PC companies and the stock market as a whole will drop back to realistic levels. I like to take the inverse of a PE for an implied return. If you take the inverse of the 29 you mentioned, you get about 3.5%. Seems like a pretty low return for stocks given the risk. WS