Yeppers, my thoughts exactly. All GSCO and JPMS are doing right now is trying to prop some interest up in this pig so that they can somehow, someway pull off a massive secondary offering to pay down the debt. To that I say "rotsa ruck". Simply engineering a short-squeeze does not, by itself, make for a suitable environment to do a secondary in.
The fact that Bezos is spinning the PR machine so hard tells me it's desperation time in Seattle. If this outfit was run with sound business practices, Bezos would be out trying to engineer some profitability and then letting the stock take care of itself, rather than telling Wall Street analysts that "they've got it all wrong." I had to laugh when he was in NYC a few weeks ago telling analysts that they were wrong to focus on the (lack of) profitability of the company. I've seen this type of behavior before by CEOs (i.e. telling analysts their method of valuation was screwed), and it never fails, two years later, the stock is sunk.
The biggest suckers in this deal are the retail sheeple who think the clock's been turned back 12 months to dot-com mania days. I also love the hype associated with this analyst meeting on September 19...I mean, let's face it, what is Bezos going to tell them on September 19th that he hasn't told them already? You've heard of "buy the rumor, sell the news...", well, the "rumor" has already been bought, so you know what's next.
Of course, the caveat is, as Jim Cramer pointed out last week, there are probably another 122 countries left that AMZN can roll-out service to, hehe. The hype associated with the France roll-out was a joke...uhh, Jeff, you wanna tell us how much the France operations are going to add to profitability?
And if this thing's being bought (ahem) because "we're going into the holiday season," then I guess we should all be piling into Dillards, JC Penney and Sears...heck, they actually MAKE money. |
