>Glenn, your problem and mine were that we did not have the staying power to maintain the short.
Sarmad and Glenn, your only problem was timing. Both of you were always correct.
Btw
There was one guy here at one time who thought Amzn was undervalued and had unlimited potential. He thought a $500bil market cap was reasonable.
>Seattle, June 23 (Bloomberg) -- Amazon.com Inc. shares fell as much as 19 percent on concern the Internet's biggest retailer may run out of cash and face intense competition this holiday season.
The stock plunged 7 1/8, or 17 percent, to 34 7/8 in early trading of 10 million shares. Amazon.com earlier fell to 34 1/16, the lowest level since December 1998. The shares have fallen from a high of 113 in six months.
The retailer has $1.08 billion in cash and is burning through $115.7 million a month, meaning it could run out of money within nine months, according to Bloomberg analytics. While Amazon.com has an established brand name, its expenses and debt are mounting, said Lehman Brothers analyst Ravi Suria. Through the end of the first quarter, the six-year-old company's losses totaled $1.2 billion.
``Going into what is arguably the most challenging holiday season, we believe that the combination of negative cash flow, poor working capital management and high debt load ... will put the company under extremely high risk,'' Suria wrote in a report.
The 19 percent decline in Amazon.com's shares was the third- biggest one-day drop since the Seattle-based company went public in May 1997.
Amazon.com was formed in 1994 and began selling books on the Internet in 1995. The company went public two years later, and has since expanded its offering to include toys, electronics, patio furniture and other merchandise.
Jun/23/2000 10:17 ET |
