** OT **
what worries me is the huge leverage they are taking, the huge debt load.
I do not know if you have spent any time reading the AMZN thread, there are a few guys there that are familiar with the AMZN financing structure, it may pay to ask them some questions.
I have not done a thorough research on it, but it appears that their debt is convertible to equity under specific conditions including a specific level of their stock price. By some, it is considered a good structure. (a unique arrangement well thought-out).
I have a small position that I have used to learn the trading patterns of AMZN. I have also hedged the position with a sold call against it and in essence locked a very small profit. Meanwhile, the bronco ride has been fun, no question about that.
The little I have found out about this company has piqued my interest enough that I may start following closer and possibly increase my position.
It may pay you to find out more.
As it would be expected from a highly speculative stock such as AMZN, there are deeply divided opinions from both camps, bulls and bears. So make your own mind. Again the reason of posting this to you is your comment in reference to AMZN's finances.
I know that if the Supremos at AMZN are good at managing cash flow, plus having a friendly channel to the debt/equity markets, could buy them enough time so as to eventually turn a small profit, however, their intention is to do so in huge volumes of merchandise.
Good luck.
Re: E-trade, I keep looking, and considering, so far I like what I see, but I am in no hurry. Indeed if higher rates are in the cards, EGRP and SCH are going lower, I don't like it, but that is how the music is played. |
