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.

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

To: Danny who wrote (111024)	10/24/2000 11:57:46 AM
From: Bill Harmond	Respond to of 164684

I avoid earnings plays. They seem to go the other way for me!

To: Danny who wrote (111024)	10/24/2000 1:03:18 PM
From: H James Morris	Respond to of 164684

>Do you think it's worth the risk to buy some ST options ahead of its earning? Danny, I wonder if anyone on this thread ever bought Amzn's convertible junk bonds? Seriously, I'm thinking Amzn is a great short term trade going into the Xmas rush. That's probably why the equity and debt markets view Amzn differently. >NEW YORK, Oct 22 (Reuters) - The bonds of Internet retailer Amazon.com Inc. <AMZN.O> are priced to reflect the high potential for default, according to the "Up & Down Wall Street" column in the Oct. 23 edition of Barron's. Amazon has about $2 billion in corporate debt and some of its bonds trade at a price that suggests there is a 54-percent chance the company could "go belly-up," the financial weekly said, quoting a report from Bridgewater Associates, which invests in bonds and currencies. Amazon's nonconvertible obligations due in 2008 are trading at around 50 cents on the dollar, Barron's said. It cited Bridgewater as noting that while the bonds reflect a high potential for default, the company still has a market capitalization of $10 billion. "The debt markets are pricing in significantly high probabilities of default, while the equity markets show little concern," Barron's quoted Bridgewater as saying. Shares of Seattle-based Amazon closed up $3-1/16 at $30-13/16 in Friday trading on the Nasdaq, well below their 52-week high of $113. Amazon shares were off more than 55 percent since the end of last year. 13:14 10-22-00