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

To: Glenn D. Rudolph who wrote (137976)	1/27/2002 2:53:50 PM
From: GST	Read Replies (1) \| Respond to of 164684

The premise of our free market economy is that it is possible to have a largely self-regulated system with integrity, accountability and transparency. I still believe very strongly in that ideal. But greed has allowed far too many of us to believe that we are equally well served by a system that rewards any kind of behavior that inflates stock prices -- in other words, if it makes stock prices go up it must be alright. We cannot survive as an economy by confusing inflated stock prices with our best interests. Inflated stock prices hurt us far, far more than they help us. Inflated stock prices are not wealth. Wealth is the result of the ability to produce value where value is defined by the willingness of customers to pay. Inflated stock prices merely transfer assets from the greedy and foolish to the greedy and cunning while undermining belief in the real process of wealth creation -- honesty, hard work and good judgement.

To: Glenn D. Rudolph who wrote (137976)	1/27/2002 8:38:40 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

>>Saturday, January 26, 2002 BLOOMBERG NEWS NEW YORK -- Amazon.com Inc.'s credit rating was raised one level yesterday by Moody's Investors Service after the biggest Internet retailer announced its first-ever profit earlier this week. Moody's raised the long-term ratings to "B3," the sixth-highest of 11 junk ratings, from "Caa1." Moody's also increased the ratings on Amazon's subordinated notes to "Caa2," the eighth-highest junk rating, from "Caa3." The outlook on the ratings is stable. Amazon.com shares surged after the upgrade, at one point rising 99 cents -- about 7 percent -- before closing up 43 cents at $14.44. The retailer has about $1 billion in cash on its balance sheet, which will be enough to meet its expenses, Moody's said. That means Amazon.com won't need to raise more money for the next two years, Moody's said. "The upgraded ratings reflect improved operating measures" and lower cash drain, Moody's analyst Marie Menendez said in a statement. "Amazon.com has improved operating leverage and reduced the percentage of fixed-cost margin by increasing sales volume." Amazon.com this week reported fourth-quarter net income of $5.09 million, or 1 cent a share, making money sooner than founder Jeff Bezos had predicted. Sales of $1.12 billion exceeded $1 billion for the first time. The higher ratings could spell lower borrowing costs for Amazon.com when it next sells bonds. The company has about $2 billion in debt outstanding, including $264 million of senior notes maturing in 2008 and $1.2 billion of convertible bonds, which mature in 2009, according to Bloomberg data. Amazon.com now has ratings akin to Domino's Pizza Inc. and Friendly Ice Cream Corp. The company is rated "B" by Standard & Poor's, the fifth-highest S&P rating, which is one rung higher than Moody's.