>>> So, if this is the plan and it works (i.e., AMZN wins the battle, becomes profitable, and validates its stock price eventually), are the founders no longer morally bankrupt as has been suggested on this thread? Is my scenario above totally without merit? <<<
Walter - you certainly have done a good job of painting the picture in a way that makes it appear that a bunch of good people are simply trying hard to succeed as Internet pioneers. And I'm sure there is a certain element of truth to that.
However , another side to the story is that 1) there is a lack of honesty in the information released about the company 2) clearly , the goal is to hype the concept , in collusion with the IB types who need to cash out , or get more business in the future 3) their CFO insulted the intelligence of the financial community by suggesting that all their marketing expenditures should be considered capitalizable , and
4) you can see how this will most likely end up - lots of "investors" sucked into a scheme that separates them from their money, while the insider crowd gets loaded. If the thing does become a viable , long-term business , they get filthy rich , and the investors do O.K.
If it disappears , they still get rich , and the investors get wiped out.
I wouldn't want to have my retirement money in a fund that had Amazon in its portfolio , thank you very much.
It boils down to heads we both win (investors and insiders) , tails you lose and I still win. And heads only comes up about 10% of the time. Follow this for a while , and see how it plays out. Regards. |
