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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 234.70-1.2%Nov 14 9:30 AM EST

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To: Eric Wells who wrote (64661)6/25/1999 3:44:00 PM
From: Sarmad Y. Hermiz  Read Replies (1) of 164684
 
>> I would be interested in hearing your reasons why you think AMZN will go up.

The main reason is that I expect Amazon to increase revenues, get into more lines of merchandise (and report more losses). However, they received a capital infusion from the converted bonds. That money does not need to be paid back. So very likely the balance sheet will show positive cash flow. Meaning they'll have breathing room to December. That will be the make or break time. Either they can ramp sales to fully utilize their new warehouses and show very efficient distribution cost, or they'll fail at it. It will be either a new high, or bankruptcy. But either way, the prospect of higher revenue will generate excitement for the stock. Which is why I wouldn't short. But the long side is very risky also.
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