Along the same lines, Bozos announces plans for another bagholder offering:
biz.yahoo.com
Wednesday November 1, 9:51 am Eastern Time
INTERVIEW-Amazon reiterates strategy confidence
By Reed Stevenson
TOKYO, Nov 1 (Reuters) - Internet retailer Amazon.com Inc's chief expressed confidence on Wednesday in its business model, cash position and accounting practices, following moves by the U.S Securities and Exchange Commission to look into them.
``I wouldn't change any of our strategy,'' Jeff Bezos told Reuters on a trip to Tokyo for the launch of Amazon.co.jp.
``We're very confident in our accounting practices,'' Bezos said, while repeating that his company was comfortable with its cash position.
Amazon announced in its recent earnings report that the SEC was looking into its accounting practices.
Amazon, which surprised investors with a strong July-September quarterly earnings report a week ago, saw its shares dip on Monday but they rebounded on Tuesday to close at 36 5/8.
However, recent reports in Barron's questioned some of the company's accounting practices, including a recent move to reclassify certain investments as ``cash and marketable securities''.
Amazon said some of the recent accounting changes it made were consistent with the practices of peer companies, and also resulted in a ``better reflection of the company's liquidity.''
A company spokeswoman said on Monday the company was ``confident that its accounting practices were correct and appropriately conservative.''
And in an SEC filing made on Monday, Amazon said that it ``may seek to sell additional equity or debt securities or to obtain credit at such times as we deem appropriate.''
Bezos declined to comment on issues over funding, which has become a focus because of the debate over its cash position.
Analysts have said a new equity offering would indicate that Amazon was shorter on cash than it has let on.
Rumours two weeks ago of a possible equity offering had triggered a sell-off in Amazon's stock as analysts said such a deal could be viewed as an act of desperation.
Because of the company's weak credit rating, it would likely have a hard time raising more money through the sale of debt, according to analysts.
The alternative, a stock offering, would probably not be well received by the company's existing shareholders who have seen the value of their investment dwindle, they said.
Still, Amazon's shares have rallied more than $17, or nearly 90 percent, since hitting a low for the year on October 18, a rebound that was bolstered by the quarterly earnings report.
Dismissing concerns over recent jitters in technology stocks worldwide, Bezos said that stock markets had become more 'normal' in 2000.
``I think that last year was the exception, but this time investors are back in their role of being sceptical.''
``I'm happy to see what has happened in the last six months in the capital markets,'' he said.
Amazon.com sells books, videos, CDs, electronic goods, kitchenware, health products, gardening tools, software, toys, cars, and holds auctions with Sotheby's Holdings, Inc.
I'm truly, truly speechless at the above.....<G> |
