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


To: Glenn D. Rudolph who wrote (119189)3/3/2001 10:49:49 PM
From: Alomex  Read Replies (1) | Respond to of 164684
 
There are lots of agressive assumptions here. One is vendors will supply with terms when Amazon has negative working capital. Vendors just do not do that. Never have and never will. Their insurance companys will not permit it actually.

Let me put it this way. There is uncertainty in predicting what Amazon will or won't do. So it is important to project best and worst case scenarios. For example a few years back a "walmart-of-the-web" was a possible best case scenario. This now looks pretty much out of the picture...

Currently, the range of realistic scenarios, in my opinion, range from Chapter 11 before the end of the summer to slight profitability in 2003.

Which one turns out to be the case depends on many variables such as availability of credit or rate of slow down of the economy among many others.