Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (64662)	6/25/1999 3:47:00 PM
From: Eric Wells	Read Replies (4) \| Respond to of 164684

Michelle - thanks for your message. There are three other things that I forgot to mention that are weighing against AMZN: 1. Internet taxes - this is bound to happen at some point - it may not be for a year or two. But when and if it does happen, it will reduce any price advantage that Amazon may have over the local bookstore. My office is about four blocks away from a very large Borders. Today, buying your average book with taxes at Borders comes out to be about the same price as buying from Amazon with shipping. However, if a customer has to pay taxes on an Amazon book, then the final price will most likely be higher than the local Borders. It's hard to say how much this might eat into their business - it might have little effect. However, I think it will have some impact (I've bought many more books at that Borders that I have at Amazon). 2. Amazon has rather large debt position at the moment - I believe it is over $1 billion. I believe the debt is in the form of a convertible bond - however, the stock price at which the bond could have been converted was never reached. This means that Amazon is going to have pay interest on the bond - and the interest payment will come directly out of profits (or I should say, will contribute to their losses). 3. The following news story appeared on MarketWatch today: cbs.marketwatch.com I find it odd in that the story quotes a confidant of Galli, Amazon's new president, as saying "Joe must have a lot of creative ideas on making Amazon work and to transform it. He knows about its problems." I find this statement odd, in that it suggests that Bezos has not done a good job as president - it suggests that Amazon has problems. I don't believe that Amazon is generally thought of as "having problems" - they are viewed as an internet pioneer with a great business strategy. I feel they do have problems though. I think a company should work to show a profit for the benefit of their stockholders. Bezos has neer proven he can make a profit. What do we do if he never makes one. Compare Bezos to Bill Gates. Microsoft was profitable before their IPO - they proved they could make money. Amazon has not. Again, I think Amazon is a great company - and I think they will be profitable. However, I don't think they will be profitable enough to justify their stock price any time soon - in fact, I think there is a chance they may never be profitable enough to justify their current stock price. Thanks, -Eric Wells

To: Lizzie Tudor who wrote (64662)	6/26/1999 11:15:00 AM
From: H James Morris	Read Replies (2) \| Respond to of 164684

>>I don't expect this stock to rocket to the upside either short term but long term I think its a huge winner. << Michelle for the likes of Mark, TomD and William it was. Trust me on that. I'm not current,so please tell me what your average cost is? Whe're going to have two circles here. One for the winners, and one for the losers. It doesn't matter if your long or I'm short as long as we all can meet in the winners circle.;-))