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

AMZN 233.22

+1.8%

Nov 28 9:30 AM EST

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To: Skeeter Bug who wrote (107381)	8/22/2000 4:42:53 PM
From: PAL	Read Replies (1) of 164684

Skeeter: the heavy burden of debt will undoubted take Amazon to Chapter 11. There was an article this morning by Dan Dorfman (not my favorite reporter) who mentioned a fund manager's view of Bezo can fool some of the people some of the time. the reason analysts are pushing for amazon is mainly for that lucrative underwriting business. amazon had to keep coming back for more money. it does not matter if investors are the ones getting screwed. just imagine if you are one of those folks who bought $ 1.25 billion convertible notes at 4 3/4% with conversion price of $ 78/share. just look at the most recent balance sheet (6/30/00): long term debt $ 2.131 billion negative networth of ($ 278.4 million) goodwill and other intangibles $ 596.7 million, and if you take these "assets". then the real networth is negative ($ 875.1 million). The above snapshot was end of June, hence current picture is even worse, maybe close to $ 1 billion negative networth. With that kind of dismal picture, the number of analysts willing to tout amazn shoulh be smaller and smaller as investment bankers will realize that they cannot float a debt instrument using that kind of balance sheet. With no underwriting fees for amazon business, why would analysts or thiuer employers support the company. they don't want to lose their reputation of pushing rotten egg. motley fool is standing by amazon, however their cost basis is around $ 3/share. motley fool would be motley smart if they sold amazon many moons ago. ltbh does not always work. look at motley fool athm, and look at current cool post on si about ltbh on att!! To those Amazon longs: There is still time to get out. Don't be the last one to leave the room, that door might swing and hit your behind.

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