Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 221.27

-0.6%

1:23 PM EST

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To: 16yearcycle who wrote (91596)	1/20/2000 6:33:00 PM
From: H James Morris	Read Replies (3) of 164684

>Not that 1 person in 20 investing in this market has a clue how to value a business. Value a business? In which economy? The old or the new? To evaluate Amzn in the new economy you need to use PERM, or price/(earnings+R&D+marketing). Some otherwise attractive stocks look ridiculously overvalued when measured using the P/E ratio, yet appear fairly priced measured with PERM. The key is to view R&D and marketing as investments, not expenses. A second useful metric is P&F(past and future performance).It contrasts a company's ability to articulate its prospects to industry analysts. Ultimately, PERM and P&F point out what new economy economists already know. Today, it's all about building customer bases while creating technologies to serve them. Ps Do you understand what I just said?

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