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

To: Oeconomicus who wrote (926)	12/5/1997 12:46:00 PM
From: zTrader_77	Respond to of 164684

Good point - and imo the volume is not going to be there - due to competition and due to the fact that internet book sales within the next 5 years will likely only account for 10% to 15% of all book sales. People that read books like to browse through the books in the bookstore and pick the books they like. And that company that is going to sell books at cost and charge a membership fee will be the big winner IMO. I buy lots of computer but I have to look through them first to make sure theythe information I need. AMZN is a good company but based on it's potential IMO it should be trading around 10 to 20 in 5 years. This estimate is based on a projection that in 5 years from now Amazon's will have sales of $1 billion dollars a year. That is a big assumption in light of the the potential competiton. Their current sales are between 100 - 200 million per year. If they can manage a return of 2% of sales, their net income on $1 billion will be $20 million. With net income of $20 million, their earnings per share will be 84 cents. At a sales price of $10 this would give them a price earnings ratio 11.5. At a price of $20 their P/E ratio would be 23.9. And there is no reason to believe that Barnes and Noble and the other established booksellers will not come out the winners on the internet - especially that company that plans to sell books at cost.