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To: KyrosL who wrote (82883)	1/8/2000 5:49:00 PM
From: xstuckey	Read Replies (1) \| Respond to of 86076

KyrosL You are correct about Amazon issuing convertible debentures and I recall thinking it was a mistake. Others, however, are not making this mistake. As to Wal-Mart, etc. opening their own web sites, they may succeed. Those that have gone before them along this obvious road have met with less than stellar results. The stocks of these brick and mortar companies are priced on (gasp)earnings rather than revenues, and when it becomes obvious that the earnings suffer because of the web site, the market rudely reprices the stock, making it impossible to finance thru the stock market. Then, the company must seek further financing thru the banks (or bond markets, etc.), all of which again look at earnings. The latest to visit this model is W W Granger. Nothing too exciting going on there. Best Trading, X

To: KyrosL who wrote (82883)	1/9/2000 11:03:00 AM
From: IceShark	Respond to of 86076

Actually, POS3's stock price ain't far off the big convert conversion price. It is ~ $78, adjusted for the 2/1 split. And the interest rate wasn't too bad either - 4 3/4%. The whole thing was great for POS3, from a borrowing standpoint, and is a testament to how easy it was to get money. As to how they will get the cash they are going to need in less than a year they already have a few billion in shelf registration stuff - equity and converts. I suspect they will issue converts if the market hangs together. As to where this all shakes out in the end, I think more or less everyone will be on the net and some will do better than others, but everyone needs to make money in the end. And being first to the party and buying leader recognition for years on end may not be an economic advantage because the cost of capital from all that debt and equity to get going will be a monster dilution on any future earnings. In other words their costs of setting up the biz is hugely expensive compared to later entrants and this first to the party leader recognition may not be worth all that much in the final analysis.