Bear Stearns downgraded Gateway (GTW

) to underperform.

Analyst Andrew Neff says the PC maker failed to execute a turnaround effort in the fourth quarter

The computer maker sees a fourth-quarter operating loss at the low end of guidance. Analyst Andrew Neff says he downgraded Gateway from peer perform on its inability to execute a turnaround effort as shown by the fourth-quarter shortfall. He believes the weakness is not an industry issue, given favorable PC demand.

Neff says Gateway faces a challenge in diversifying into a consumer-electronics retailer in a highly competitive market. He expects more cautious guidance in the Jan. 29 earnings release. Neff recommends investors shift away from consumer-oriented information-technology plays in January, and possibly revisit them in the summer. He widened the 93 cents 2003 loss estimate to a 95 cents loss, and widened the 45 cents 2004 loss to a 65 cents loss.