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

To: Skeeter Bug who wrote (6960)	1/3/1999 11:52:00 AM
From: TraderEd	Read Replies (3) \| Respond to of 8002

Ladies and Gentlemen: I have made a big mistake, a very big mistake. I purchased my wife a 450 MH Gateway computer for Xmas. Yesterday, I tried to subscribe to the Gateway online network for her internet connection. For three hours I ran around their rat maze they call "technical support" trying to find a local number for internet access and then how to enter the number into the Gateway software so it would dial the number. No one at Gateway knows how to do this. Not our local store manager or his employees nor Gateway's "technical experts". Each time I got a real live Gateway employee to speak to and was able to ask my question, I would be placed on hold and passed on to the next "techncial expert". Then after another ten to fifteen minute wait on hold, I would be required to gave them my ID number, my credit card number, my telephone number, my purchase invoice number, my computer's serial number and lastly my mother's maiden name before they would allow me the courtesy of asking my question. Then the "technical experts" would again place me on hold and the process would be iterated. To say the least, I was pissed. I then punted and went to AOL and then to MSN. It took a total of 11 minutes to sign on successfully to both of these internet services. Aaaaaah, at long last, intelligence has been found. Yes Virginia, there is technical competence on the net. How do you spell relief? AOL or MSN will do it for me. I only hope that Gateway makes its hardware much better that their software venture into the internet. I don't know what I'll do if I have a hardware problem. However, I must admit to having a very warm feeling in my tummy as I think of the MUEI and CPQ stock in both my wife's and my IRA accounts. <<<<<<<<<<<GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG>>>>>>>>>>

To: Skeeter Bug who wrote (6960)	1/3/1999 12:14:00 PM
From: Kory	Read Replies (1) \| Respond to of 8002

skeeter, I am not bitter, just tired of people posting crap without checking facts. You seem to like making up statistics without ever checking there validity. When you simply "assume" things and call management liars, I feel the need to correct you. Which I must do again, I am afraid: <<anyway, in the time period gtw has grown eps by a whopping annual rate of 12-14%, the stock is up 150%.>> In the 4th quarter of 1996, Gateways stock price hit 33 1/8 (split adjusted). At the 1998 year-end closing, that represents a 55% stock price appreciation in 2 years during which time GTW will have grown earnings about 28%. During that time GTW's PE ratio went from a 20, to the current 25. I don't know where you get your 150% appreciation, except I guess if you are using the absolute low point in late 1997/early 1998 and the absolute high point in 1998, you can come close. But, if you want to use 1997's earnings (which I know you don't and I agree), then the price should have tripled this year. This obviously is nonsense, but then so is the 150% stock appreciation in two years quoted by you. GTW does have serious issues to contend with. They are tiny in comparison to IBM, CPQ, and Dell. They are much more dependent on the home PC market and have struggled both internationally and in the business market. They have not managed growth nearly as well as Dell. They lack a lot of industry expertise and have had to move their headquarters in an attempt to get it. If you care to seriously look at the company and evaluate execution and performance, I would listen. But when you simply make-up statistics and vent negative opinions, don't whine about being insulted. Kory