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

To: Sarmad Y. Hermiz who wrote (105412)	6/25/2000 10:12:00 AM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

If this subject is not beaten to death, I wonder what is a proper value for Amazon, let's say with $4B sales and average retail profits ? How much are "average" profits on $4B sales, anyway ? Maybe 5% ? That's $200M. Or approx 50c/share for Amazon. So the stock is worth $10/sh more or less. If it overshoots on the down side, then you can buy your 100 shares again in single digits. Given its very high debt burden, then let's say low single digits. Sarmad, This a good value analysis but is missing the real important isuue which is Amazon cannot possibly turn any profit with $4 billion in sales. They would have to have the right and be able to sublease the distribution centers. These structures were built and paid for by others in return for long term leasing at reasonably high rates. If Amazon eventaully defaults, we are going to have some very unhappy developers owning "highly automated distribution centers" in the middle of nowhere. I do not believe we can use your value analysis due to the fact the $4 billion does not work. Glenn