Don...
Re: AMAZON
I found the following article in the current issue of Forbes that compares Amazon with Boston Chicken. Some amazing similarities.
It reads much better if the two comparisons are laid out side by side but this is the best I could do.
FYI
Bob T.
Amazon.chicken?
By Daniel Fisher
Amazon.com and bankrupt Boston Market owner Boston Chicken are two very different companies. But there sure are a lot of spooky parallels.
Target: people too busy to cook own meals.
Problem: limited patent protection on roasting of chicken.
Stock: doubles to $24.25 on Nov. 9, 1993 offering, peaks at $41.
Creative financing: pays franchisees' construction bills, then counts interest payments as income.
Diversion: buys into Einstein/Noah Bagel Corp., another money losing food chain.
Backscratching: Fawning analysts work for firms that share in underwriting fees, including:
BT Alex. Brown
Morgan Stanley Dean WItter
Merrill Lynch
Bonds: $600 million in equity like convertibles, sold when stock riding high. But debt must be repaid nonetheless.
Target: people too busy to browse at nearby bookstore.
Problem: limited patent protection on discounting of bestsellers.
Stock: up 30% to $30 on May 15, 1997 offering, tops $60 by year-end.
Creative financing: collects revenue from book buyers now, pays book publishers later.
Diversion: buys into drugstore.com and HomeGrocer.com, other money losing Web sites.
Backscratching: Fawning analysts work for firms that share in underwriting fees, including:
BT Alex. Brown
Morgan Stanley Dean Witter
Hambrecht & Quist
Bonds: $1.25 billion in equity like convertibles, sold when stock riding high. But debt must be repaid nonetheless. |
