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

To: H James Morris who wrote (95570)	3/5/2000 2:13:00 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

To all Motley fool fans. Where in the hell have these clowns been for almost a year? Now I understand Rule Breaker #10. Don't buy an IPO because of risk! But they continue to hype Amazon.com! Well at least they like Coca Cola. >March 5, 2000 Ask the Fool IPO Confusion Q: In 1997, when it came public in an IPO, I bought shares of A.C. Moore Arts and Crafts stock at $15 each. The stock rose to $20 and then dropped to $5. I' m familiar with the industry and know the company is committed to high-quality work, so I don' t understand what' s happening to the stock. Any thoughts? -- Rob Dembosky, West Chester, Pa. A: First off, we generally advise people to think twice before investing in IPOs. Newly public companies don' t have much in the way of track records to scrutinize, and their stocks tend to be quite volatile in their first few months or year. We' d rather give the companies a chance to prove themselves and the stocks a chance to settle down. You did right, though, looking to a familiar industry for stocks in which to invest. It' s best to invest in companies when you have a solid understanding of their competitive landscape, the industry' s outlook and so on. It' s not enough, though, to park your money in a company you respect. You need to make sure that it has a successful business model, that it' s putting its earnings to good use and growing, and that its prospects are promising.