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

To: John May who wrote (1215)	1/16/1998 9:35:00 PM
From: Oeconomicus	Respond to of 164684

John, cash on hand long ago and deep pockets are not the same thing. Let's not distort the facts here. Yes, Amazon HAD $45mm at 9/30. But they had net working capital of only $33mm. BKS, on the other hand, has a revolving credit facility that they wisely minimize drawings on (no sense earning deposit rate on idle cash when you can pay down your revolver; you are a businessman and I'm sure you understand cash management). Last Q-end, they did have "only" $11.8mm in cash, but they also had $327mm of net working capital PLUS $445mm of undrawn revolving credit (at 3/8% to 7/8% over LIBOR vs. AMZN's 3.50% to 6.2% including cost of warrants). So, do you really believe $45mm (or whatever may be left of it) plus a very costly $75mm term loan beats $772mm of liquidity at BKS? BTW, BKS actually made money last Q. Not much, but it was positive. Same for BGP. If you are very lucky, you'll be able to say that for AMZN some time in the next millenium. Regards, Bob PS: What if neither of us make any significant money off this by Feb 5? Watch on TV?

To: John May who wrote (1215)	1/16/1998 11:47:00 PM
From: Harry Simpson	Read Replies (1) \| Respond to of 164684

Re: Candle, apparently you are grossly misinformed. When you measure pockets consider this: AMZN on 9/30/97 had $44.7 million in cash with a current ratio of 2.9 to1 BKS on 11/1/97 had $11.8 million in cash with a current ratio of 1.4 to1 John: you seem to confuse the concept of deep pockets with loose change. BKS has a much deeper pocket, considering it assets, credit and cash, while AMZN has more cash at present (burning it like a roman candle), but little assets, credit or cash to sustain itself. AMZN is the little coin pocket in your Levis, while BKS is the bigger deeper pocket. Harry