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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: KyrosL who wrote (82883)1/8/2000 5:49:00 PM
From: xstuckey  Read Replies (1) of 86076
 
KyrosL

You are correct about Amazon issuing convertible debentures and I recall thinking it was a mistake. Others, however, are not making this mistake.

As to Wal-Mart, etc. opening their own web sites, they may succeed. Those that have gone before them along this obvious road have met with less than stellar results.

The stocks of these brick and mortar companies are priced on (gasp)earnings rather than revenues, and when it becomes obvious that the earnings suffer because of the web site, the market rudely reprices the stock, making it impossible to finance thru the stock market. Then, the company must seek further financing thru the banks (or bond markets, etc.), all of which again look at earnings.

The latest to visit this model is W W Granger. Nothing too exciting going on there.

Best Trading,
X
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