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

To: Randy Ellingson who wrote (86306)	12/6/1999 11:32:00 AM
From: Eric Wells	Read Replies (3) \| Respond to of 164684

Unless there is some short-term need for the money, a long term holder of a great company has no reason for concern. Randy - I must say that I am surprised that you don't have more appreciation for risk. Even Andy Grove said "only the paranoid survive". With the rapid pace that technology changes, it is possible that a company's business model can be rendered very unattractive by another company coming out with better technology. This is where risk lies - and I believe it is prudent to constantly evaluate it. A volatile stock market also poses risks to the economy. And concern over risks of a rapid decline in the stock market might lead a wise investor to hedge an investment (without selling), whether it be through options or other investments - one would have to have an appreciation for risk in order to do this. Wouldn't you agree? Which part don't you believe? As for those aspects of Amazon I don't believe in, they include the following: 1. I don't believe in cavalier CEOs who make public statements about the unimportance of profits, and who refrain from emphasizing the risks of the company's business model. 2. I don't believe in companies that release statements to the press, statements that are more fluff than substance, knowing full well that they will have a major impact on the stock price. 3. I don't believe in companies that hire VPs that depart within the year taking millions of dollars with them. 4. I don't believe in companies that have high level insiders selling large amounts of stock. 5. I don't believe in companies that after five years continue to have mounting losses with no sign of positive profits coming any time in the near future. 6. I don't believe in companies that spend hundreds of millions of dollars in building awareness of their brand - when they are competing in an environment of intense price competition and where customer switching costs are extremely low. You are right, stocks of great companies are nearly always over-valued. But great companies generally have good CEOs, insiders that hold for the long term, good PR strategies, solid business models - and profits. Thanks, -Eric