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Technology Stocks : Dell Technologies Inc.

DELL 127.90

-4.4%

Dec 17 3:59 PM EST

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To: Meathead who wrote (129953)	5/31/1999 12:26:00 AM
From: Chuzzlewit	Read Replies (1) of 176387

Meathead, I have analyzed AMZN to a fare-thee-well, and will confidently say that there are some important differences between AMZN and Gigabuys. The first difference is that AMZN is not profitable because it cannot escape the costs of inventory handling while Gigabuys engages in drop-shipping; The second difference is that AMZN must allocate a huge advertising budget to maintain itself, while Gigabuys can parlay the existence of Dell's website; The third difference is that AMZN must either grow or die. This is a direct consequence of the fact that it is unprofitable but maintains a positive cash flow owing solely to the differential in cash flow timing between customers and distributors. But I suspect the true motivation behind your question is to explore why Dell, which owns Gigabuys, does not have the pro rata valuation for Gigabuys that AMZN does. I think the answer is straight forward. People "investing" in AMZN are mad as hatters. TTFN, CTC

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