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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.62+0.1%9:48 AM EST
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To: KeepItSimple who wrote (32257)1/2/1999 7:18:00 PM
From: KeepItSimple  Read Replies (1) of 164684
 
Here's a way Amazon could pull a profit this quarter, if they really didnt care about fundamentally bringing the SEC down on accounting practices of every company.

Use the 400% christmas shopping rush as a backdrop, then use your hyper-inflated stock as the "bait."

Tell all of your workers that if they work overtime for free, you'll give them an extra 100 Amazon options. Tell them to tell all their friends about the deal, and suddenly you have an extra thousand temp workers who are working for "free" for the holiday rush.

Since the SEC hasn't gotten around to stopping the practice of writing off employee stock options yet (although it's been said they are about to) you can have all this free labor that doesn't increase your expenses for the quarter, thus allowing you to have the "same" fulfilment expenses as the previous quarters, but with 400% more revenue. In this scenario it is very likely they could show a profit.

If Amazon actually tries to pull this off, Bezos will win my respect as having the biggest balls on the planet. He'll also be known as the company that finally ended the free ride of option compensation accounting tricks for most high tech companies in the US.
The SEC will come down on them like a ton of bricks, i'd wager.

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