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

To: Kory who wrote (6421)	8/7/1998 10:36:00 AM
From: H James Morris	Read Replies (1) \| Respond to of 8002

Kory< Cash and marketable securities were $892 million, a new record for the Company> It seems the way to go is, invest in marketable securities. If your sales growth slows down, which obviously will effect earnings put everything in the stock market, which is bullet proof. I want to know who is investing Gtw's cash? so they can manage mine.

To: Kory who wrote (6421)	8/7/1998 3:59:00 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 8002

kory, gtw included interest as part of their ops eps, if i'm not mistaken. i didn't. kind of ambiguous on my part, however, no excuse for your accusation. they have a record amount of cash that produced a marginal increase in earnings of 2 cents. i'm very familiar with mftrg and i understand completely why one tries to limit inventory and increase turns. most assuredly, the purpose is not to have no growth in your core business!!! ;-) however, when companies are at extreme valuations and the core business isn't growing (my original point - not core business excluding bank receipts) then one ought to be concerned. gtw didn't make more money selling pcs - that is a fact. gtw made 2 cents more counting marginal bank receipts. my investments aren't performing well NOW. i've since learned that LIQUIDITY and SIZE are what is valued in a mania. most of my companies are small and illiquid companies - several being biotechs which, like nearly all biotechs have gotten hammered as of late. however, each one could be a 10 bagger in five years - from the point i bought them. notice what is valued. liquidity and size. not VALUE. it is irrational. no growth companies trading at ridiculous levels isn't rational. micron is a great example. losing cash flow at nearly a $1,000,000,000 rate trading at $7 billion. irrationality always ends nasty. it will again. but, that's ok. this will all work itself out. maybe next week. maybe in 2 years. there are always justifications for companies being absurdly valued. that is why they get absurdly valued.