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I would like to thank plasticizer for catching a 
mistake in my recent RuleMaker analysis for Gateway. 
I have corrected the error (I had mistakenly used 
Total Assets rather than Total Current Assets for 
Gateway's 1997 data), and have reposted the analysis
below.  The new figures don't change any of the 
point values for GTW, so it still remains a solid
second tier rule maker.

Without further ado, the revised calculations:

Financial AnalysiCompany Being Evaluated                          Competitor #1   Competitor #2  Competitor #3

                     Gateway                                          Dell           Compaq           IBM
                 Current Period Year-ago PeriodYear-over-Year    Current Period  Current Period Current Period
                      1998           1997          Growth         9mth - 11/98        1998           1998
Income Statement . . .
  Sales                   7,468          6,294      18.7%                 13,070         31,169         81,667
  Cost of Goods S         5,922          5,217      13.5%                 10,125         23,980         50,795
  Net Income                346            110     214.5%                  1,035         (2,743)         6,328
  Shares Outstand           159            156      1.9%

Balance Sheet . . .
  Cash & Equivale         1,328            632     110.1%                  2,797          4,091          5,768
  Current Assets          2,228          1,545      44.2%                  5,915         15,167         42,360
  Short-term Debt            11             14     -21.4%                      0              0         13,905
  Current Liabili         1,430          1,004      42.4%                  3,658         10,733         36,827
  Long-term Debt              3              7     -57.1%                    512              0         15,508
                                                                                1              1              1
Margins & Ratios . . .                                                                                         Competitors' Average
  Gross Margins            20.7%          17.1%      3.6                    22.5%          23.1%          37.8%     27.8%
  Net Margins               4.6%           1.7%      2.9                     7.9%          -8.8%           7.7%      2.3%
  Cash-to-Debt             94.86          30.10    215.2%                    5.46       No Debt!           0.20      0.42
  Net Cash                1314.0          611.0    115.1%                  2285.0         4091.0       -23645.0   -5756.3
  Fool Flow Ratio           0.63           0.92    -31.2%                    0.85           1.03           1.60      1.16


                  Continue Here

Ranking Rule Makers

1) Brand          Points (0-1)                                  3) Financial Dire Points (0-3)
Familiarity                    1                                Sales Growth                   3
Openness                       1                                Gross Margins                  3
Optimism                       1                                Net Margins                    3
Legitimacy                     1                                Shares Outstandin              2
Inevitability                  1                                Cash-to-Debt                   2
Solitariness                   0                                Fool Flow Ratio                3
Humor                          1                                Expansion Potenti              2
  Subtotal                     6                                  Subtotal                    18

2) Financial Loca Points (0-2)                                  4) Monopoly Statu Points (0-4)
Mass Market Habit              0                                Gross Margins                  0
Gross Margins                  0                                Net Margins                    2
Net Margins                    0                                Net Cash                       4
Cash-to-Debt                   2                                Fool Flow Ratio                4
Fool Flow Ratio                2                                Convenience                    2
Your Interest                  2                                  Subtotal                    12
  Subtotal                     6
                                                                5) Your  Enjoymen              1

                   Total Score               43  Second Tier


Again, my apologies for posting the erroneous figures
earlier.  I hope this has caused no one any undue
confusion or frustration.

the LanceMan

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