Many influential insiders now oppose the deal, even though terminating it would presumably lead to management changes.

His departure is likely related to Gateway's inability to reinvigorate its professional and direct businesses despite significant headway in retail.

While characterized as voluntary, we believe his departure is likely related to Gateway's inability to reinvigorate its professional and direct businesses despite significant headway in retail, which has lower margins.

Our analysis suggests that roughly 67 percent of institutional shareholders would need to vote in favor of the deal in order for it to pass. We view this as highly unlikely, particularly in light of Walter Hewlett's intention to publicly solicit proxies.

Expectations are running high. Nevertheless, we expect ... further appreciation.

We are excited to host our financial services conference again this year. This year's line-up of management teams and presentations will provide our investing clients with invaluable insight into earnings growth, credit trends, the housing boom/bust and competitive trends in financial services.