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: Victor Lazlo who wrote (114969)	1/10/2001 11:27:36 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

How do you do that? Do you buy them physically and then resell them, or buy them as extra inventory? Or is it like buying an option? I am not sure I know what you mean as a difference between physically or extra inventory. I do physically buy and hold them as inventory. I do not buy options on them nor are there any available of which I am aware. I simply resell my inventory as the year progresses. The advantage is if a customer comes into one of my stores and is looking for a specific diamond, we likely have it right there in stock so we do not lose the sale. The disadvantage is money is tied up, insurance costs more, etc. I was able to sell my excess in the secondary market at a 20% profit in early December since the demand was there and I bought those diamonds for 30% below the December market price. This can work against one. If the economy slows and demand slows, then any held inventory is worth less and one has money tied up plus is paying for extra insurance. The only plus is the extra sales from having the selection. The stock market does not help me in that way<G> It charges me interest when I am on margin;-) I am currnetly inventory neutral meaning holding the proper amount based on a typical sales year. Glenn