Amazon.com, Inc. (AMZN) Message Board

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

AMZN 233.78

+0.2%

10:18 AM EST

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To: H James Morris who wrote (105682)	6/29/2000 4:53:00 PM
From: Randy Ellingson	Read Replies (2) of 164684

HJ- Did you read the articles at TSCM by the ex-Fool (or do you stop when you see any connection there)? This part on equity investing I agree with completely, and I see many people making this (IMO) mistake: The Lehman piece [see Part 2] holds an old analytical error. "Therefore, we would become a lot more comfortable with the credit if we see the company generating positive operating cash flows during the next shopping season..." Well, if the company actually performs in the next holiday season, the stock will perfectly reflect this information and will have gone up a lot in the interim. This may not matter very much to the bondholders, but the belief that the equity holders can wait until after positive information hits the tape and then invest is a little silly. You actually have to own the stock in advance of confirmation of the economic model to make the big money. Buying at higher prices for "more certainty" is code for systematic underperformance. This, in my analysis, is one of the principal reasons that professional money managers systematically underperform -- the certainty tax. thestreet.com Randy

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