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

AMZN 222.55

-4.4%

Nov 18 3:59 PM EST

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To: Tom D who wrote (10553)	7/16/1998 8:12:00 AM
From: Glenn D. Rudolph	Read Replies (1) of 164684

There is a middle ground between philanthropist and "cashing in", or "scam artist" (to put Glenn's words in your mouth). I think most CEO's believe they are building a viable business, creating meaningful jobs for their employees, and bettering society in many indirect ways. If they wanted to help people directly, they'd become doctors or nurses. Tom, Your last sentence made me laugh but I know where you are coming from. I make marriages happy, book sellers help with education, music sellers bring entertainment to ones life and those that sell pornography (I am sure there is a good cause there too it is just too early for me to figure it out<G>).... I wish to be clear on my point. I believe Bezos as a young energetic and brilliant man, started this company with the idea of it being successful. He also had the connections to get the venture capital backing. His intentions were to start a new business concept. I would guess about six months ago he realized the new business model will not work. Buying inventory as do BKS and BGP is the only way to keep the costs of goods sold low enough to turn a profit. Using Ingrams and The Taylor group just was not going to cut it. Cash was going quickly and last fall he went to the banks and took out a $75 million loan to keep the company operational. The $75 million was all the banks were willing to lend since they figure the company had no values above that. All assets of AMZN, name included were callaterol.It became clear in early spring the $75 million was not going to be enough so the junk bond deal was implimented. I see no evidence for the thesis that Bezos is knowingly running up the share price so he can unload his shares before the public wises up. If he does this, his reputation will be dirt. The end result of this attempt at a business became clear to Bezos. He is bright as I stated. He knew by last quarter AMZN was not a viable business. The remaining issue was that he and the insiders could get wealthy after putting in all this work, if they were able to inflate the stock price. Covey came up with the earnings without marketing and placed all operations in marketing too. Bezos gave his stamp of approval. It is my opinion he is now biding his time hoping for a white knight to come to the rescue and to cash out with millions if not billions. That is how I see Amazon.con now. Glenn

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