SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Trader J's Inner Circle
NVDA 183.78-0.6%Dec 10 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Trader J who wrote (10654)3/5/1999 9:41:00 PM
From: StockHawk  Read Replies (1) of 56535
 
Trader J - AMZN short - You have been thinking about an AMZN short. So how does this sound - based on earthly fundamentals AMZN and YHOO are both way overpriced. AMZN is doing something old - selling books - in a place that is new - the net. YHOO is doing something new - being a portal/gatway/home site/search engine - in a place that is new - again the net. Yahoo is making money and perhaps can make more money in its new place doing new things. AMZN is not making money. Traditionally books are a low margin business. Publishers sell to all bookstores at pretty much the same price. (The American Booksellers Association sued and won against a group of major publishers stopping them from giving favorable terms to chain stores and other large customers.) Price discounts can come out of only one place - margins. So AMZN may never make much money selling books. CD's and video's are not much better.

So how does this sound. Go long YHOO and use the margin to short an equal amount of AMZN. If all the inets zoom - or crash - the "neutral position" should not suffer. As long as here forward AMZN performs more poorly, or less spectacularly, than YHOO you make money.

What do you think? Tempting or crazy?

StockHawk
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News