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Pastimes : The Naked Truth - Big Kahuna a Myth
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To: NickSE who wrote (82881)1/8/2000 3:31:00 PM
From: xstuckey  Read Replies (2) of 86076
 
I heard that the Man of the Year said Amazon wouldn't make any money until 2006. Go to your bank and tell your banker that when you want a business loan.

Nick,

Amazon never plans to go to the bank for a loan. If Amazon needs more money, they will go back to the stock market for it, and they will get all they need as long as revenues are growing.

Then they will use that money to undersell everyone in the real world until no major players are left. Pretty clever model, if you ask me.

I have no position in the stock, but I think that's the idea behind most of dot coms, and I don't see a hell of a lot their real world competitors can do about it.

Of course, in the meantime, this business model is very non-inflationary.

Best Trading,
X
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