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


To: Bill Harmond who wrote (117671)2/13/2001 9:22:34 PM
From: GST  Respond to of 164687
 
"Bought Applied Micro Circuits @ 47" Does the milk turn sour when you open the fridge door?



To: Bill Harmond who wrote (117671)2/14/2001 2:04:28 AM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 164687
 
You're asking me? I only understand cash flow! :)

I did receive a PM from a fine gentleman that did define working capital. This was his definition.

"Working Capital = Current Assets - Current Liabilities."

This seems like an accurate definition and varies for stock holder's equity by leaving out long term debt and good will.

Cash burn is still $2.7 million per day seven days a week.

I was thinking about our brief discussion regarding the gas burning fireplaces that are prevalent in the California area used to give that a fine warm atmosphere. We discussed using wood which apparently is costly and "messy" in CA.

Using a small bit of imagination one could relate to comparing Amazon's cash burn to that of burning gas. Let's use $100 bills since that is the highest frequently used denomination in this country. You could turn the gas off and throw these $100 bills on the fire for effect. Keep in mind that leaving them in wrappers would just cause them to smolder. So throwing them on loosely would work. I believe you could not burn $2.7 million even using $100 denominations in an evening unless you fed the fire all night. My point is in real terms you could not keep up and burn the real money that quickly. Also, cash typically does not have termites or bark to fall on the floor. Think of the amount of natural gas you would save;-)
Glenn

Glenn