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

To: Kory who wrote (6829)	10/23/1998 9:42:00 AM
From: Bipin Prasad	Respond to of 8002

all, "Component supply shortages" is very interesting to me! 1. Is this GTW's regular wording every qr or is this wording new just for this qr? TIA! 2. Which component are they talking about? InSook

To: Kory who wrote (6829)	10/23/1998 10:00:00 AM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 8002

Question for Ashok "up the market with a call" Kumar. Are these quotes accurate? They're coming through my computer, but the flip-flop factor appears to be high even for you. (boldface, my emphasis) Dow Jones Newswires -- October 22, 1998 Gateway Inc. Posts Strong 3Q Results; 4Q Outlook Mixed By ANTHONY PALAZZO Dow Jones Newswires ..."I would think the outlook is not good," said Ashok Kumar, an analyst with Piper Jaffray. Kumar, a Gateway bull with an aggressive buy rating on the stock, was disappointed in revenue, which missed his target of $1.9 billion. He's worried that Gateway's profits in price-sensitive consumer-market stronghold will erode, forcing it seek higher-margin sales to the business sector - where heavyweights Dell Computer Corp. (DELL), International Business Machines Corp. (IBM) and Hewlett-Packard Co. (HWP) have already staked claims. "It's impossible to go in and displace any of them," Kumar said. That was last night. And yet, strangely, I see this morning: The Wall Street Journal Interactive Edition -- October 23, 1998 Gateway Posts 3rd-Quarter Profit Of $80.6 Million, Topping Forecasts By GARY MCWILLIAMS Staff Reporter of THE WALL STREET JOURNAL "...This clearly sets them up for a very good fourth quarter," said Piper Jaffray Inc. computer analyst Ashok Kumar. He warned that the decline in average prices forces Gateway to sell ever more low cost PCs to keep earnings rising. Are these quotes accurate? You tell Pallazzo "I would think the outlook is not good"... ...and then you tell McWilliams "This clearly sets them up for a very good first quarter". The conference call changed your mind that much? Tom

To: Kory who wrote (6829)	10/23/1998 11:01:00 AM
From: Kip518	Respond to of 8002

you can speculate all you want about the next years PC sales and the general outlook for the entire industry. FWIW, here's my speculation. On CNBC this morning, pretty Maria interviewed Lou Gerstner and asked what was his (IBM's) outlook for the PC market. He replied that the PC era is over. When you think about who the boxmakers primary customers are it is not the little guys wandering into the mall cowbarns. It's financial institutions, corporations, government, and educational institutions. IT expenditures (at least in the first three) are likely to fall of a cliff next year. Financials are on the ropes, throwing out employees (but presumably not their workstations); corporations are suffering through profit declines from asia/debt/market problems & coping by cutting costs; and governments are increasingly likely to be tied up with Y2K expenses....etc., etc. Mom, pop & little sister are not going to fill in for the big guys. I owned a lot of Gateways both personally and through work. I've sold others on them as well. Until my last half dozen purchases, I've loved them. However, recently they've become very unreliable...lots of part failures (perhaps this what was referenced in the earnings report. GTW has to be replacing a bunch of parts). However, I don't intend to buy another (moving to Dell for the time being) I've loved my Gateways. However, I used to love my AT&T and Commodore computers too. IMO, the technology & economic trends are running against GTW's business...GTW is a long term short.

To: Kory who wrote (6829)	10/23/1998 4:29:00 PM
From: Skeeter Bug	Read Replies (3) \| Respond to of 8002

kory, this q was ok. however, 1 q is not enough to get me all hot and bothered. i'm not convinced the 6% growth rate has gone anywhere. why? duh, seasonals, kory, seasonals. back to school and xmas cause gtw to sell more boxes and make more money. new concept just developed this year ;-) gtw can affirm whatever they want. it is meaningless. doesn't mean they do well, doesn't mean they do poorly. it only means they don't now know they won't make it. actually, the spin these guys put on stuff i wouldn't be surprised if they don't make it ;-) i'd also be interested in revenue recognition for yourware. is it front loaded? maybe... the saga continues... ;-)