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

To: yard_man who wrote (6450)	8/11/1998 11:17:00 AM
From: Greg Jung	Read Replies (1) \| Respond to of 8002

I believe Dell's earnings only slightly fell short of covering the buyback. It is IBM that does the heavy borrowing. Dell still holds call options to purchase shares at $40 or so, and it continues to take spread positions (selling puts, buying calls) that will keep it in supply of below-market stock. The stock price may overvalue the company but their execution has been spotless in the face of continual skepticism. Check out HWP, CPQ (formerly known as DEC): Great portfolio of products but main revenue is the dumb PC box. And they hardly make profit from that. While everyone has droppiong PC sales due to normal business cycle Dell's increases. If you want to bark about high priced stock, WCOM/MCIC is probably an easier target. They are all teflon, anyway. Greg

To: yard_man who wrote (6450)	8/11/1998 11:33:00 AM
From: Ramsey Su	Read Replies (1) \| Respond to of 8002

tippet, article in San Diego Union this morning about the country stores and soon to be opened "cow palace" here. There will soon be 2 country stores in SD which I intend to visit. The photo shows a spacious high tech comfortable setting. One quote in the article opines that GTW needs to sell a ton of PCs to justify the overhead. Never measured it before, how many PCs are in a ton? GTW is going into direct competition with the retail stores with their country stores. Knowing how cut throat that business, I just find it hard to believe that strategy will be profitable. Ramsey