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.

Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Eric Wells who wrote (463)	5/22/2000 3:55:00 PM
From: Wizard	Read Replies (1) \| Respond to of 57684

Eric, why don't we just make the assumption that everyone has a diversified portfolio (whether they do or not) and skip the discussion on asset allocation? Or go start a thread on asset allocation. Actually, forget that, launch an entire portal around the topic and invite us all with XML-enabled messaging. I am just giving you a hard time. >> "because you have no idea what that individual has in their portfolio or what percentage of their portfolio has been allocated to stock XXX." This point is very, very important - its just not the purpose of this particular thread. I suggest you go to Amazon and search for a few books on the subject and go to it... Here is a good, comprehensive text that will keep you busy for a while: amazon.com btw, don't let the 1,120 pages scare you...

To: Eric Wells who wrote (463)	5/22/2000 5:20:00 PM
From: Tom Kearney	Read Replies (1) \| Respond to of 57684

Eric - re: 'I believe it is not a good use of time to discuss investments in individual securities in isolation. As Robert posted here recently, asset allocation is key.' I hope you and Robert and any others who feel this way have a useful discussion. But, what I come to SI for is to find out what exactly people are buying, and what news they think is significant, on both macro and micro issues. I can't research all 7,000+ stocks in the Wilshire 5000. I find out what companies people are interested in here, and research those. I find certain people like Robert, Eugene, William and others have great ideas and do great research, and Glenn posts links to great articles and that leads me to my research. I post my original research (puny as it is) when I get a chance (CHKP, TENF, AAPL), just in case anyone is interested. Let's assume this is just a momentum discussion (it isn't). So what? If people provide good info, and share, and post thoughts in good faith, someone is likely to find some worth in it. Isn't that the whole point? Regards, Tom p.s. How about that NAS close? WOW!

To: Eric Wells who wrote (463)	5/23/2000 8:44:00 AM
From: Glenn D. Rudolph	Respond to of 57684

May 22, 2000 Personalized E-Mail ------------------------------------------------------------------------ Amazon's Rejiggering Of Numbers Raises Investor Eyebrows By ROSS SNEL (This report was originally published late Friday) NEW YORK -- Some investors are scratching their heads after online retailer Amazon.com Inc. (AMZN) rejiggered some of the numbers on its first-quarter balance sheet. Two items in the Form 10-Q that Amazon filed with the Securities and Exchange Commission Monday - "unearned revenue" and "other investments" - were $62 million lower than corresponding lines on the news release the company issued April 26. The adjustments - one under assets, the other under liabilities - balance each other out and don't affect revenue, losses or shareholders' equity figures for the first quarter. However, the tweaking will subtract $1 million to $2 million from revenue during each quarter in the next few years, according to Tim Stone, Amazon's investor relations director. The changes, which Amazon attributes to a reevaluation of contracts it inked with other electronic retailers, have left some investors wondering why the company didn't issue an alert separate from the SEC filing. "This is a big deal," said Jeff Matthews, a portfolio manager at Ram Partners LP in Greenwich, Conn., who said he has a short position in Amazon. "That they changed this without raising a flag is staggering to me." Robert Burgoyne, a technology strategist at Monument Internet Fund, said the adjustment appeared unlikely to have a significant effect on a company as big as Amazon, which logged total revenue of $574 million in the first quarter. But Burgoyne added that he was disappointed the company changed its balance sheet without otherwise informing the public because it erodes investor confidence in general. Amazon's Stone said the company didn't separately announce the rejiggering because it had no impact on first-quarter revenue and income. He also said the company put an "in-depth" discussion of how the accounting will affect future quarters in its SEC filing. "It would frankly have been redundant to put out a news release," Stone said. The changes, which were reported in a column on TheStreet.com's (TSCM) Web site, came when Amazon finalized the valuations of contracts the company signed with smaller electronic retailers during the first quarter. Under those contracts, Amazon refers consumers to co-branded Web sites it sets up with online retailers like Living.com Inc. (X.LIV) and Ashford.com Inc. (ASFD) Stone said those contracts gave Amazon equity holdings of its partners. The "finalization" of the contract valuations lowered the value of those holdings by $62 million, he said. On the other side of the balance sheet, Amazon decreased the amount of revenue from those contracts it had deferred for future periods. Shares of Amazon.com ended the week at 52 5/8, down 2 3/4 or 5%. Volume was 4.6 million shares, compared with average daily volume of 7 million. In addition to its stock, Amazon has issued $1.3 billion in convertible debt, or hybrid securities that are part equity and part debt. But an investor in convertibles said the changed numbers on the latest balance sheet shouldn't affect where the debt trades unless the company's share price declines. Margaret Patel, a portfolio manager at Pioneer Investment Management Inc. in Boston, said that investors in Amazon's convertible debt value it based on its convertibility into stock. - Ross Snel; Dow Jones Newswires; 201-938-5285; ross.snel@dowjones.com -Shella Calamba contributed to this report.