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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 216.19-0.4%10:37 AM EST

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To: H James Morris who wrote (106128)7/14/2000 5:14:18 PM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 
-- The analyst reiterated the firm's buy rating and said the third and fourth quarters would be
good for Amazon.

-- Salomon's cash flow projections assume gradual improvements in inventory turnover,
payables turnover consistent with historical levels, and account for continued strong seasonality.

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Amazon has shown as revenues grow and merchandise lines grow, inventory turnover is decreasing rapidly. Why in the world would it go back to historical levels? A reduction in revenue is the only way so they may reduce inventory and inventory writedowns. My opinion is the assumption of the analyst is majorly flawed.
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