Amazon.com, Inc. (AMZN) Message Board

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

AMZN 222.55

-1.6%

Dec 15 3:59 PM EST

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To: fedhead who wrote (129818)	8/9/2001 4:50:51 AM
From: GST	Read Replies (3) of 164684

What is your basis of valuation for SONS?? At $12 you have a stock trading at 13 times sales -- this was the April low. Why on earth should anybody pay 13 times sales for SONS? Why would that be the end of the downside risk? Why not 5 times sales -- still a very rich premium for such a risky bet of a stock. That would take it down to about $5 from its current $22. Why would anybody want to average in on the way down from here? What possible valuation method would lead an investor to believe there is any upside potential for this stock? Investors do not pay a premium for risk -- on the contrary, they only buy at a price discounted for risk, except of course in a market bubble where risk is ignored. Should we expect a return of bubble valuations?

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