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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (71835)	12/13/1999 2:26:00 PM
From: Knighty Tin	Respond to of 132070

Ike, Yes, and the new shares help dilute the losses per share. However, the high stock price does nothing for cash flow. So, Amazon has to hit the financial suckers again to find the moolah to run their business into the ground. True, at the moment, it looks like their are planty of suckers with money hanging out of their pants' pockets, but some day that source may dry up, if only temporarily. Then the game is over.

To: re3 who wrote (71835)	12/13/1999 4:23:00 PM
From: Eggolas Moria	Respond to of 132070

The AMZN 4-3/4% rule 144a issue ($1.25 billion if memory and data are correct) has a number of provisions related to redeeming the issue. There is provisional call protection to 2/5/02. If the bonds are redeemed within that period, a make whole payment of $212.60 less prior interest payments is required according to the data I see. The original conversion price was $156.055 per share according to the S-3. Adjusted for a 2:1 stock split in September 99, the conversion price would be about $78.03 per share. According to the S-3, the company may redeem the notes if "(1) the closing price of the common stock has exceeded 150% of the conversion price for at least 20 trading days in any consecutive 30-day period . . . " So, that would make the hurdle about $117.04 per share on an adjusted basis before the company could redeem the issue. I have the high for the year at 113 on 12/9/99. Therefore, it would appear that the requirements have not yet been met for the company to redeem the issue. Sorry for the abbreviated analysis.