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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: t36 who wrote (13214)	8/3/1999 8:51:00 AM
From: Kimberly Lee	Read Replies (1) \| Respond to of 108040

thanks, I36. AMZN = the Emperor with no clothes, from ISR today: <The worst, however, may be yet to come. Amazon.com was forced on Monday to make an interest payment on $1.25 billion in debt that the company sold in February. Further, as long as AMZN shares trade below the conversion level that would allow the company to convert the notes for stock, it must continue to pay interest on the debt. So what's the conversion level? Try $234.08, a price Amazon.com would have to reach at least 20 out of 30 consecutive trading days to convert debt to stock. Some analysts have dismissed the importance of the debt payment, noting correctly that it won't impact earnings expectations in '99. However, coming so soon after a quarterly report that showed dramatically widening losses, the psychological impact on profit-anxious investors could accelerate Amazon.com's already precipitous plunge. Like all other e-tailers, Amazon.com is looking forward to the fall, when holiday shopping begins in earnest. Last year was a huge one for e-tailers, and analysts expect an even better season in '99. Until then, there's not much to support a turnaround -- or even a holding operation -- for Amazon.com shares. August looms as a long month for the e-tail king and its investors.>