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

To: Bill Harmond who wrote (117597)	2/12/2001 11:12:24 PM
From: H James Morris	Read Replies (2) \| Respond to of 164687

Hey Bill, and I thought only you and I had a bad credit rating. >Ailing Lucent Technologies on Monday suffered a further blow as its credit rating was cut to one level above junk-bond status, forcing the world's largest maker of telecoms equipment to renegotiate existing credit lines.

To: Bill Harmond who wrote (117597)	2/13/2001 1:45:45 AM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164687

"Amazon.com (AMZN; $13.38; D-2-1-9) 00A d$1.19; 01E d$0.87 • A competitor released a note calling into question Amazon's liquidity position, predicting that the company would face a "creditor squeeze" in the second half of the year. • After re-analyzing Amazon's cash and liquidity, we remain comfortable with it. Amazon needs to stay on track to turn an operating profit in Q4, but as long as several key trends continue to improve, we consider a squeeze very unlikely. • It is important to understand the dynamics of changes in Amazon’s working capital, which are not as simple as "less is bad, more is good." One of the benefits of Amazon's model is the ability to operate sustainably with far less working capital than land-based competitors. • In Amazon’s case, we believe that working capital is NOT the best measure of liquidity—cash is. We agree that Amazon’s working capital will turn negative this year. We just don’t think this is a problem. • We estimate that Amazon’s cash balance will bottom in Q2 or Q3 at more than $400mm (probably much more). We believe working capital will bottom in Q4 in slightly negative territory (again, this alone is not a concern)." Could anyone truly define the difference between working capital and cash? Geezz it was not long ago that the talk of a problem with working cpaital was pur bunk accoriding to Bezos and Blodget. Now working capital will turn negative but cash won't?