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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.50+0.1%Dec 26 3:59 PM EST

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To: GST who wrote (37186)1/27/1999 3:05:00 PM
From: SKIP PAUL  Read Replies (2) of 164684
 
Amazon is in deep trouble. It is in between a rock and a hard place. Let me explain. The companies debt equity ratio is 2.5 times its equity base with an ongoing operating loss. The company badly needs capital to execute its expansion plans. It is going to be difficult if not impossible for it to raise any more debt or vendor financing with its poor balance sheet. With the stock price so high no erstwhile investment banker is going to underwrite the stock anywhere near its current price. Effectively it is locked out of the capital markets.
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