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To: RocketMan who wrote (61728)	1/12/2000 11:02:00 AM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 152472

OTOT/RocketMan actually I too am looking for such a company even as we speak. a net company that is increasing their losses every quarter by giving away for free as much as they can, to make sure their revenues keep growing. If they are lucky they will never become profitable. Initially I thought of AMZN because of AAbelson's brilliant insight last issue that it is actually the AMZN stock investors which are subsidizing the selling at below cost at AMZN and so I would get a chance to participate in that. -------------------------------- Blood bath and beyond "Amazon was a conspicuous example. The stock got creamed on Wednesday, dropping over $12 a share to below $70 (and its recent high of $113). An innocent might be forgiven for supposing that the stock had been pounded because the company disclosed a profit or even a smaller loss. But no, the company was quick to reassure that it was business as usual -- in other words, bigger and better losses. The disappointment lay in revenues. While Amazon reported fourth-quarter revenues of more than $650 million (versus $252.9 million in 1998's final three months), Mary Meeker, Morgan Stanley's Internet maven, in a Q&A in this magazine last month conjectured that the number might be "closer to $1 billion than $500 million." But no matter how you slice it, $650 million is closer to $500 million than $1 billion. Paul Kasriel, Northern Trust Co.'s fearless economist, dubs Amazon's modus operandi -- the more it sells, the more money it loses -- as the Bezos scheme, in honor of Amazon's main man, Jeff Bezos. The Bezos scheme, Paul says, is a variation of the Ponzi scheme. "In a Ponzi scheme, funds are raised from new investors to pay off promised returns to previous investors. In the Bezos scheme, Amazon raises money from investors and passes it on to its customers by selling below cost." As Paul points out, if you continue to sell things below cost, you can't help but capture more market share. And, he sniffs, "In this new era where 'hits' take precedence over profits, investors line up for the privilege of transferring more of their wealth to the customers of Amazon." Last week, though, as intimated, the Bezos scheme seemed to abruptly lose its allure to those formerly eager investors. Just temporarily, we earnestly hope. ------------------------------- However I have always been interested in your insights into the market and so if you have anything better or should I say more losing? than AMZN, please let me know TA Message #61731 from RocketMan at Jan 12 2000 10:45AM Internet portal Yahoo's CFO warned investors in a conference call Tuesday that its revenue growth momentum is unsustainable. Really? I thought they could sustain their growth forever. Say, they're not thinking of becoming a real company like that AOL are they? If I had any Yahoo I would sell immediately and find a net company that is increasing their losses every quarter by giving away for free as much as they can, to make sure their revenues keep growing. If they are lucky they will never become profitable. Several come to mind.