>Amzn is going down -- no way out this time.
Yep. Should see the teens by Aug. Might be worth a look at for a bounce in Dec.
BTW, did this Lehman analyst just arrive from Mars that he just now realized this:
"From 1997 through the first quarter of 2000, Mr. Suria said, the company has received $2.8 billion in financing, primarily through debt offerings, while its revenues has totaled $2.9 billion, meaning that it has cost the company 95 cents for every $1 in revenue.
He said that Amazon has $1 billion left from the $2.2 billion it raised in the previous five quarters. For Amazon to continue operations and grow, it much either generate sufficient cash flow or keep raising money, he said.
'Going into what is arguably its most challenging holiday season, we believe that that the combination of negative cash flow, poor working capital management and high debt load in a hyper-competitive environment will put the company under extremely high risk,' he said in the report.
The report also said that Amazon's 'inability to make hard cash per unit sold, is clearly manifested in the weak balance sheet, poor working capital management, and massive negative operating cash flow -- the financial characteristics that have driven innumerable retailers to disaster throughout history.'" |
