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.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: xstuckey who wrote (82882)	1/8/2000 4:21:00 PM
From: KyrosL	Read Replies (2) \| Respond to of 86076

Issuing stock may not be an option -- their institutional holders will not view it favorably, and the stock will probably tank well before they manage to sell any. That's why last time Amazon needed money to fund their brick and mortar warehouses, they issued convertible debentures. The stock is well below the conversion price, and they have to pay lots of interest to their bondholders. This money will soon run out. I wonder what they will do then. Meanwhile, the brick and mortars are learning -- slowly but surely. Wal-Mart is getting its web act together, with plenty of already built and ready warehouses to support web sales many times those of Amazon, and with much better economies of scale. And so does ToysRUs. Barnes and Noble seems to be doing OK too. etc. etc. I agree the whole internet thing is a wonderful inflation fighter. In fact, I think it will turn out to be too good an inflation fighter and will cause some serious deflation down the road. One thing is sure: it caused a great deal of deflation to my bills in the last few years from charting services, to patent searches, to newspaper and magazine subscriptions, to telephone calls, etc. etc. and, of course, the bargains at Amazon and the other e-tailers.