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To: Dale Baker who wrote (23458)	12/29/2000 8:57:40 AM
From: Norm Demers	Read Replies (1) \| Respond to of 118717

NMSS, about 10 today, looks to be headed for 16 or better. Bottom is in.

To: Dale Baker who wrote (23458)	12/29/2000 2:06:22 PM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

Plenty of strange trading today - took the tax loss in FDX calls and added some AIGI. Natural gas stocks sold off then rebounded partially; RCOM in the black along with LPAC. I also expect SORC to pop next week once the tax selling is done. AMZN and EBAY tanking; TOY puts also in the black. BBY cracked 30 again - a great move from the selloff LEAP call buy in the 22's. Amazon.com (AMZN) 16 7/16 -15/16: Some positive reports are coming out on Amazon's holiday season despite the overall retail weakness that we've been hearing about all month. Yesterday Janney Montgomery Scott upgraded AMZN shares from SELL to HOLD, hardly a ringing endorsement, but an upgrade nevertheless. Today, ABN AMRO has reiterated their BUY rating on the shares citing strong orders and healthy revenue growth. Indeed, Amazon.com seems to have had another successful holiday season if you judge it solely on the top line, but the fact that the positive orders data hasn't moved the stock is troubling. Last year, Wednesday's press release would have induced a wave of upgrades and a rash of buying. This year it provoked an upgrade to HOLD. More troubling is the fact that even after the 80% YTD decline in AMZN shares, the stock is still overvalued when compared to other industry-leading retailers. Assuming $1 bln in Q4 sales, AMZN trades at a P/S of about 2.1x compared to Gap's (GPS) 1.7x, Walmart's (WMT) 1.3x and Barnes & Noble's (BKS) 0.5x. Amazon fans will be quick to point out that those comparisons do not apply because Amazon.com is an Internet retailer and does not incur the same labor, real estate and other costs associated with brick-and-mortar operations. But considering that operating expenses were 37% of revenues in their last fiscal quarter, and that number will be higher in Q4, we're not buying that argument. Despite the strong sales numbers that Amazon seems poised to deliver for Q4, and despite the fact that the shares are only about a buck and a half above a two-year low, the risk/reward ratio is still not compelling. - Matt Gould, Briefing.com