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

AMZN 234.86

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2:26 PM EST

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To: Oeconomicus who wrote (132014)	9/27/2001 11:41:14 PM
From: Glenn D. Rudolph	Read Replies (1) of 164684

Glenn, what on earth prompted that arrogant outburst? Why is saying I've never heard of a particular service and asking you if it's something new a problem for you? FYFI, I haven't worked in banking since 1990 (though I have worked closely with bankers since). Bob, You are correct. I am sorry and my response was uncalled for. Auctionwatch has been really slow tonight and I was trying to accomplish something. That should have nothing to do with you. The insuring of AR is not new. I can't say I really know when it started. It has been around for the duration of my career. There are three firms that specialize in it. My mind is so tired I can't think of one name. Anyhow, they specialize in insuring a vendor for receivable from a vary large customer. Most of the jewelry manufacturers for example were insured against loss of AR from Wards which filed bankruptcy this year. The industries in which this is common is jewelry, electronics, toys, etc. Items that are 50% or more sold during Q4. The insurers take a percentage of the AR so this balance the risk out across many sectors. In other words, the toy, electronics and jewelry retailers are all unlikely to fail at one time. This weekend I will pull up the names of the firms that supply this protection. Most of sites and some will list their clients. The assets they are financing the purchase of and everything else they can latch onto? That's the big question, not whether the model will work long-term. Come on Glenn. You've got all the answers. Surely you knew that, right? I surely do not have all the answers. I guess I can't find any concrete assets Amazon owns. Amazon has one of the strangest business plans I have ever seen. They dumped hundreds of millions of dollars into fulfillemnt equipment to use in the DCs that they lease. It reminds me of the firms that expand too quickly and do leashold improvements in the shopping centers of landlords. Even in those cases the leasehold improvements are a much small proportion to the value of the inventory. That is not the case with Amazon either. I have never seen such a convoluted business structure in the past. Except for Amazon's server and front end software, what do they own that amounts to anything? This is far from a professional comment bit it is really "goof." Please accept my apology for my in poor taste post. Glenn

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