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To: Don Westermeyer who wrote (4793)	12/19/1997 7:39:00 PM
From: LRS	Read Replies (1) \| Respond to of 27307

Don't even sweat the $10! You are in great shape. Just hang in there. I know that we all keep saying that shorters will have their day with this one, but it will come--it can't keep going up forever. Large insider blocks will be sold, the fascination with internet stocks will wane, pressure on ad rates will pick up, YHOO will continue acquiring other unprofitable sites, etc. Perfection is built into the price, and that's the bottom line. It's funny about AMZN...when I first looked at that stock a while back I decided that I would never short it because its revenue generating potential is pretty huge..even though it will be unprofitable. However, it seems the shorts over there have been fairly successful with it (relative to YHOO shorts), and let's face it Barnes and Noble and Borders will keep AMZN in check. A bricks and mortar strategy combined with an internet presence seems to be the best e-commerce strategy for a retailer....

To: Don Westermeyer who wrote (4793)	12/19/1997 7:57:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 27307

Don, where did you short Amazon?

To: Don Westermeyer who wrote (4793)	12/20/1997 10:37:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 27307

Don, Here some detail of the Morgan Stanley Dividend Discount Model: S&P 500 equilibrium point S&P 500's with US 30-Yr bond yield at Oper Earnings 5% 5.5% 6% 6.5% 7% =========== ==== ====== ==== ====== ===== $43 1006 913 832 763 701 $44 1025 930 848 776 714 $45(1997 est) 1044 947 863 790 726 $46 1063 964 879 804 739 $47 1082 981 894 818 751 $48 1102 998 909 832 764 $49(1998 est) 1121 1016 925 846 777 $50 1140 1033 940 860 789 $51 1159 1050 956 874 802 $52 1178 1067 971 887 814 $53 1198 1084 986 901 827 S&P 500 closed Friday at 947; the US 30-yr bond just under 6%, pretty close to fair value based on 1998 earnings estimates You can see how the value point changes with long-term rates or S&P 500's composite earnings. The current debate seems to focus on whether that $49 is achievable.