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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 226.19

-1.8%

Dec 12 9:30 AM EST

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To: Mike M who wrote (43003)	2/28/1999 9:48:00 AM
From: Glenn D. Rudolph	of 164684

Exactly Glenn...makes this a pretty risky investment by any standard. Not much prospect for earnings, much of that revenue growth may well be due to acquisitions as much as anything... Mike, This depends on if one wants to invest in a publically traded venture capital firm. Amazon found they cannot be profitable being a retailer so they uses "borrowed funds" as venture capital mony in a startup such as drugstore.com. Drugstore.com does an IPO of 75 million shares with a float of 10 million. Amazon receives 34.5 million shares that cost them about $1 each. If the market is still gaga over .com firms after lockup, Amazon sells some of these shares for $150 give or take. This replenishes the cash coffers as they are depleting. This could go on forever since Amazon will have more cash to use as venture capital for other firms. The risk here is the market loses its infatuation with .com companys. Glenn

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