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

To: Bill Harmond who wrote (137864)	1/25/2002 12:51:19 PM
From: Reilly Diefenbach	Read Replies (2) \| Respond to of 164684

Based on how they handled Enron, I'd say not much.

To: Bill Harmond who wrote (137864)	1/26/2002 11:34:53 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Yeah Glenn, what does Moody's know anyway? Looks like you owe me quadruple. :) Seriously, I believe their working capital analysis is flawed. They based it on one quarter and that was the holiday quarter. Please notice had AOL not provided $100 million last summer/fall, Amazon would not have survived the holiday season. That $100 million was enough to keep working capital positive throughout the fall time frame. Management had insisted during the conference call in January 2001 that Amazon's liquidity was sufficient for all of 2001. That turned out to be an incorrect statement. Cash burn is still a serious problem and working capital is more of a serious problem. Jeff indicated Amazon would be cash flow positive for the year and I believe Moody's took him at his word. Jeff has predicted cash needs incorrectly for many years now.