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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.42-0.3%10:34 AM EST

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To: KeepItSimple who wrote (40421)2/16/1999 5:31:00 PM
From: Sarmad Y. Hermiz  Read Replies (1) of 164684
 
KIS,

<Is there a chance if the stock drops low enough that the bonds could literally throw the company into bankruptcy?>

As long as they don't spend the money, the interest they earn will cover the coupon. But if they spend it on facilities or inventory or developing book_shelf_access_robots and cannot generate positive cash flow, then they would probably have to float more stock, because no one will lend them more, then it is down hill.

Now if they find something profitable to sell, and generate billions in profits, there will still be a bankruptcy,... mine.

-Sarmad
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