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

To: HG who wrote (90226)	1/7/2000 8:20:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Sheesh ! You talk like my grandfather Victor. Old isn't necessarily better ? In companies, it almost never is...! I will not debate this directly in that it may be so. However, experience is very important. Amazon has a lot of people with experience in high tech but very few with any real experience in retailing. Make no mistake about the fact that Amazon is a retailer and that is all. Amazon has made huge retailing errors in their few short years of existance. The first was to buy books from distributors in place of publishers and pay 8% more which cut margins 8% with the selling price being equal. It became clear to Amazon this was never going to work so they started inventorying a good deal of their best sellers. Many of their promtotions are not necessary for exisiting customers. A satisfied customer will return without the need to give then a $10 coupon ever time they make a purchase. It appears from what most people say on this thread, Amazon does satisfy their customers. So why give $10 certificates with each order by exisiting customers? Particularly, when the average order is around $30. That is 33%. Also, the product mix is deteriorating rather than improving. Amazon enters new busineses but each one they enter have lower gross margins that the business they are already in. I have no clur how the tools sold but I believe but am not sure that there are decent margins in tools. Electronics have such small margins that most electronics retailers ever turn a decent profit. Amazon has spent a fortune building a brand name that is well respected. What is wrong with choosing a line with their name on it? See Abacrombee and Finch. At greater than $2 billion in sales, a brand of their own would be ideal. See Craftmen tools.

To: HG who wrote (90226)	1/7/2000 8:54:00 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 164684

<<Sheesh ! You talk like my grandfather Victor. Old isn't necessarily better ? In companies, it almost never is...!>> Try this, young happy girl- The EPS rating from William O'Neill's institutional advisory database for WMT is 91. In other words, WMT's earnings-per-share growth for the last five years outperformed that of 91% of the 12,000 publicly-traded companies in O'Neill's institutional advisory database. AMZN has a 3 EPS rating, meaning 97% of publicly-traded companies have better earnings-per-share growth over the last five years. In terms of relative stock performance, WMT sports a RS of 75, meaning WMT's stock price performance for the last 12 months outperformed that of 75% of the 12,000 publicly-traded companies in O'Neill's institutional advisory database. AMZN? Well ?.. uh?.. AMZN's RS is um, 30, meaning that for the last 12 months, 70% of 12,000 publicly-traded companies had better stock price performance than AMZN did. For the last 12 mos, WMT is up 75%; AMNZ's stock is flat for the last 12 months. I'll take your grandfathers' stock any day. Victor