>> Let me pretend to be a AMZN bull. I would point out that bks.com is delaying its IPO <<
Who cares?
>> Of course, the fact that Bertelsmann is giving 300 million (200 million for stock, 100 million for expenses) can simply be ignored. <<
Hmm...$300 million isn't exactly chump change. Sounds like Bertelsmann means business.
>> Another bullish factor to point out is YHOO earnings tomorrow. <<
Yes, this is true. This can lend temporary support to AMZN, but the news will wear off quickly. Either YHOO sells off ahead of earnings tomorrow so it can run the next day, or it runs up ahead of earnings and then sells off the next. Either way, there is going to be some profit taking no matter what YHOO reports.
>> YHOO is fused to AMZN in most investors minds, so the two oculd run up together <<
They can only to a certain extent. Obviously they have decoupled slightly, AMZN is almost 30% off it's highs while YHOO is within striking distance of new highs. Furthermore, people are starting to figure out that AMZN's business prospects are not nearly as great as YHOO. Did you see AMZN at any conferences talking up margins and guiding analysts higher? Nope, estimates for losses are widening on almost a weekly basis. Is YHOO on the hook for more than half a billion in debt? Nope. Kind of makes you wonder how well AMZN would survive during a nasty recession, even though they don't have to start paying down that debt for a few years.
Anyway, Asian markets are all rallying and the futures are up. They say timing is everything. Why Bertelsmann and B&N couldn't get their asses in gear and pick a better day to announce this is beyond me. If they would have reported this last week we probably could have seen AMZN break below that mighty stiff support at 100. Kind of makes me wonder just how smart these idiots at Bertelsmann and B&N are. If they were savvy they would wait until AMZN was up against the ropes and then punish them with this left hook for maximum effect. These losers don't know how to kill their competitors. Maybe they are finally pulling their heads out of their asses long enough to figure out what to do. They need to kill Amazon NOW before they become a financially strong company. Do whatever it takes to weaken their stock price and moral at the company. Undercut them, force them out of business by driving their stock and margins down. Make that debt repayment look ever more ominous. Yeah, B&N and Bertelsmann might have to take some losses themselves for a while, but it's worth it to kill AMZN before they are a financially sound company. With a recession looming on the horizon and losses mounting, now is the time to stick it to them.
AMZN is just a waiting game, and I've got nothing but time. Eventually all the shorts that shorted AMZN at 30, 40, 50, 60, 70, 80, etc will be flushed out and replaced by shorts with a much higher cost basis. That's how all short squeezes end. Eventually you end up with shorts in strong hands, that aren't covering everytime AMZN jumps 5 points. Shorts that have enough conviction and ice in their veins (like me) who will happily add to positions on rallies. |
