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


To: Randy Ellingson who wrote (112537)12/7/2000 11:08:01 PM
From: Glenn D. Rudolph  Respond to of 164684
 
I can think of many seemingly less risky options at this point. What's up with their inventory management these days? I look forward to hearing that explained during their next CC.



Randy,

You know I do not like the firm nor its management. Take my comment with a grain of salt. They are experimenting since they do not have retailing experience. They overshot inventory last season and unshot this season. Toys R Us helped them with the toy inventory issue. However, electronics have simialr inventory problems. The products do not sell very well after the season is over. The technology changes so one cannot hold the invenotry long and expect it to sell well. The manufacturers are not going to keep product in their wharehouse to supple a retailer when needed. They will not take that risk. The retailer has to go out on a linb and inventory for the entire seasona nd then either maintain margins or take markdowns depending upon how the season plays out.