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Strategies & Market Trends : Roger's 1997 Short Picks
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To: Bob Trocchi who wrote (5385)9/17/1997 9:49:00 PM
From: wolfdog2   of 9285
 
Bob, the gist of the Fortune article is that B&N has the financial muscle to knock AMZN out of the box. I.e. they warehouse their own books, can buy books at cheaper price because of their volume discounts, etc. Now the interesting thing is that recently I read another article (I don't recall where) stating that AMZN had the advantage because they had much lower fixed costs, i.e. no bricks and mortar. My own experience on at least one occasion, was the AMZN had more of a selection and cheaper prices than B&N in its stores. I haven't compared B&N online with AMZN.

One major risk that I see in shorting AMZN is that the internet stocks are in major up moves. I've just been burned in CYCH and APOL, which are both overpriced in my opinion.

In sum, I wouldn't short AMZN at this point even if you think B&N will eventually clobber them, which is far from a foregone conclusion in any event.
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