Amazon.com, Inc. (AMZN) Message Board

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

AMZN 233.22

+1.8%

Nov 28 9:30 AM EST

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To: Oeconomicus who wrote (9223)	7/7/1998 3:16:00 PM
From: Rob S.	Read Replies (1) of 164684

That would be sure to make the bears smile from ear-to-ear. I read a discussion on what Amazon might do to expand their business enough to justify the billions in valuation. The idea that they could go into sales of computer, office or some other types of products was looked at. The impact of those offerings on the business model would be much different than selling books. Amazon gets terms for payment to the major publishing houses of an average of 45 days. That means that they hold consumers money for that period prior to having to settle their books with the suppliers. Nice arrangement but no better than other book e-tailers. But if they sell computer or other gear, the credit arrqangements are usually to settle the payments upon product shipment. That would be a tremendous strain on already stretched cash-flow. The free ride of piggy-backing the credit of the major publishers wouldn't apply. They could join OnSale, EGGS, and other computer stuff e-tailers in losing money. AMZN might have another run at the 140 level, suckering in fresh wanabee momentum players, IMO. Sold some more naked calls today . . . now nicely positioned. Will sell more if we get another run up.

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