Amazon.com, Inc. (AMZN) Message Board

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

AMZN 232.12

+1.6%

3:59 PM EST

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To: Gary Korn who wrote (4095)	5/8/1998 7:23:00 PM
From: Mark Myword	Read Replies (2) of 164684

re: >> what AMZN may want to do<< I think what they want is to pump the stock price up as high as possible , and cash out fast. They can always issue more bonds in five years , if it comes to that. That consideration is in the distant future ; Amazon's immediate problem is the cash needed to survive and maintain the growth scenario , not sink into oblivion. They have now been granted the cash to attempt to do that , by a bunch of bond buyers who must have flunked the risk/reward part of their basic training. I would rather be a long here , and have the equity upside , than to be a lender to a cashburner that may dissolve into nothing. When a company goes bankrupt , the bondholders can be more-or-less totally wiped out ; happens all the time. This bond issue increases the chance for Amazon to be a L/T player , and who knows , maybe even turn a profit eventually. That doesn't , however, change the basic fact that this stock is wildly overvalued and likely to correct very significantly.

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