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To: Baldur Fjvlnisson who wrote (1848)	2/6/2001 10:36:23 AM
From: Baldur Fjvlnisson	Respond to of 74559

Lehman: Amazon May Face Creditor Squeeze NEW YORK (Reuters) - Amazon.com (NasdaqNM:AMZN - news) faces a possible ''creditor squeeze'' in the second half of 2001 because it has low levels of working capital, and investors should continue to avoid the Internet retailer's convertible bonds, Lehman Brothers Inc. said in a report released on Tuesday. ``Without additional capital infusion, the working capital level is expected to dip into negative territory during 2001,'' wrote Ravi Suria, Lehman's vice president of convertibles strategy and long a critic of Amazon.com. ``The low levels of working capital could trigger a creditor squeeze in the second half of the year, creating considerable downside risk to revenue and cash estimates for the second half.'' Suria has said Seattle-based Amazon.com could expect to have liquidity problems in the first half of 2001. Its recent results ``have only increased our concerns,'' he wrote, mainly because current liabilities grew faster than current assets. Last Tuesday, Amazon.com, which sells everything from books to hammers to barbecues, said it will cut 1,300, or 15 percent, of its jobs in a bid to turn profitable by the end of the year. It also said it will stop selling unprofitable items. Amazon.com shares closed on Monday on Nasdaq at $14-7/16, just off its 52-week low of $13-9/16, and 83 percent off its 52-week high of $84.