Captain Kirk: This Sunday, Brinker cited the classic short squeeze
scenario with respect to Amazon.com now playing on Wall Street.
Last weekend, Brinker observed that, given only 19 million shares
available for trading purposes and a reported short position of
nine million shares, Amazon.com (AMNZ) was a juicy plum ripe for
the squeezing. True to his prediction, Amazon.com soared this week
past and has, as Brinker noted, doubled since 12 June 1998. As a
footnote, Amazon.com-- with a market cap of $6.132 billion and a
current price of $124.00-- has yet to generate any earnings, exceeds
the market cap of Barnes & Noble and Borders Books combined
(which booksellers sell 20 times the books of AMZN), and is ex-
pected to earn a profit not before A.D. 2000, per Brinker. For long
shareholders of this firm, Brinker offered his advice of extreme cau-
tion going forward at these levels.
Brinker also intoned notes of cynicism with respect to the Yahoo
story. Said stock is now trading, according to Brinker, at some
400 times earnings with a market cap approaching $9 billion. |
