Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 233.22

+1.8%

Nov 28 9:30 AM EST

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To: Sarmad Y. Hermiz who wrote (54441)	5/1/1999 8:28:00 AM
From: Glenn D. Rudolph	Read Replies (1) of 164684

My belief is the upward drivers are exhausted for now, and therefor it is vulnerable to any general market downdraft until some catalyst comes along. Sarmad, Are you aware that $86 million of the recent convertible bonds had been redeemed as of March 31, 1999? The stock was up much higher in April so one might suspect that more redemptions occurred. The $86 million was just over 7% and that occurred in just two months. My point is the float is increasing very quckly and there are a lot of bond holders already selling. That does place downward pressure on Amazon's stock price. One may also assume the bond holders bought for the redemption premium and do not plan on holding those bonds for the long term. This will cause a lot of stock dilution. There is no lock up period for the bond holders close to earnings and the insiders may sell in a few days again too. I wish I knew how many more dollars in bonds were redeemed on Thursday and Friday of last week. Glenn

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