Amazon.com, Inc. (AMZN) Message Board

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

AMZN 244.41

+0.6%

Nov 7 9:30 AM EST

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To: Glenn D. Rudolph who wrote (11215)	7/22/1998 12:03:00 PM
From: umbro	Read Replies (3) of 164684

How long will the junk money last? Glenn says: However, if losses are even close to present estimates, the current burn rate has doubled and the money will be gone this fall or by Jan 99. Glenn, how do you arrive at that figure? If AMZN loses -0.44/share, that's about 20 mil., or possibly 80 mil./year going 12 months forward (really too many variables to estimate both up/dwon). They received 300M in financing, so that could last a while (theoretically). I think a lot hinges on the various restrictions, for example, minimal cash flow requirements imposed by the bond holders. If AMZN doesn't hit those targets, then I agree that the bond holders will tighten the screws on AMZN (perhaps via preferred shares or warrants, which would further dilute the common shares), and it could fold earlier than a simple burn rate vs. capital calculation would indicate.

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