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

To: Glenn D. Rudolph who wrote (130305)	8/19/2001 11:53:51 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 164684

Balance sheets and income statements using GAAP is all that counts. Glenn, I thought you were smarter than that. HJ and Cramer - er - Crawford making that mistake I can understand, but you? You know that GAAP income is easily managed through accounting tricks too numerous to list. Balance sheets can be managed too, especially if you know how to hide debt off the books (within the rules, mind you). EBITDA is the best measure of the ability of a business to generate cash from its operations. Of course, one must also have an understanding of the capital expenditures and working capital required to support and grow the business. Besides, you can't have positive net income without first getting to EBITDA positive, unless of course you have huge amounts of interest income to offset your operating losses (see YHOO of 3 or so years ago).