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

To: H James Morris who wrote (130333)	8/21/2001 10:30:56 AM
From: Bob Kim	Read Replies (1) \| Respond to of 164684

HJ, re: Merrill Lynch's Amazon-watching analyst Henry Blodget gave the agreement a thumbs-up Merrill's CC analyst hasn't even bothered to chime in. In fact, he has CC rated so low it can't even be solicited for purchase by ML brokers. Two years ago, the same guy said that Best Buy and Circuit City would "Amazon" the internet for consumer electronics.

To: H James Morris who wrote (130333)	8/21/2001 11:55:54 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

"Ritter and Blodget both agree that there might be more similar announcements forthcoming. Blodget projects that as many as 25 major brick-and-mortar retailers could sign similar pacts with Amazon.com. " I wonder how they came up with this number LOL. Glenn, I thinking this is a good deal for Amazon.com and circuit city too. What do you think? This is far better for Cicuit City than it is for Amazon. This was clearly a way for Amazon to reduce their investment in electronic inventory. This was required due to their working capital problem that worsens daily. Amazon is panicking. This is how I see the real play out of this deal. The sales staff at all Circuit City stores work on a comission. They will not receive a commission for picked up sales at the Circuit City store that were bought on Amazon. The Incentive for the sales staff will be to convince that buyer to return their pruchase (which they never even took home) for another similar product that they will convince many consumers is a better bargain and better technology. Sonce Circuit City staff can handle Amazon refunds, the Amazon purchase will be refunded right there in the store and the new purchase directly from Circuit City will be processed. Circuit City management will also be behind this marketing plan so they need not give up 10% of the margin to Amazon and they have much happier sales personel. This is the perfect deal for Circuit City and was a graceful way for Amazon to exit a good part of the electronics business. I know how people sell. You can "trust me on that!" I also know I I am correct on the outcome. Finally, what is Amazon going to do with all the DC space they paid for if most larger and heavier products are sold out of regular retail stores?