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

To: Lizzie Tudor who wrote (159139)	8/29/2003 12:31:36 PM
From: hueyone	Read Replies (1) \| Respond to of 164684

Nobody would ever buy it based on fundamentals. Why is that? I think Fred Hickey was buying AMD on fundamentals. There is a chance that a money losing company selling at 1 to 1.5 times sales with some very competitive new product releases may be reasonably valued from a fundamental, intrinsic value perspective even though it has been losing money. I haven't studied AMD much that yet though. This would be in stark contrast to many other tech companies who are selling at 3 to 8 times sales with negative or low earnings, and which have no realistic chance of ever being profitable enough to justify purchases of the business at current valuations. There is no way Amazon's actual future business performance and profitability, for example, will ever justify a purchase of Amazon stock at today's prices imo. However, if Amazon continues to capture "investors" imagination for a sustained period of time, it may still turn out to be a buy at these prices. Many professional investors openly admit there is no fundamental or intrinsic value behind many of their recent purchases of tech stocks. They are just going with momentum, TA and the trend. They certainly aren't looking at these tech companies as skillful deployers of capital. Anyone with basic training in financial analysis can quickly ascertain that most tech companies are absolutely horrible deployers of capital. online.wsj.com Tech-Stock Surge Brings Back A Hint of the Late-1990s Frenzy. Share Rally Runs Well Ahead Of Sales and Profit Growth. Many of those supporting the stocks, in fact, are Wall Street pros who are buying more in a quest for short-term trading profits than based on any plan for long-run investment in the technology sector. Mr. Coburn finds professional money managers already are making plans for the day, sooner or later, when the selloff begins. He says, "Clients are saying to me, 'How can I be sure I get out before everyone else does, because I know it will be very painful. JMO, Huey