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

To: PeterGx who wrote (1237)	1/20/1998 10:42:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 164684

Peter, allow me to punch a big hole in your strategy with a question. Why tie up your capital in a position that is guaranteed to make you no money? If you are not yet convinced that the likely path is down, but see limited upside from here, why play at all? Wait for either the business' results to catch up to the valuation (Y2K?) or the valuation to come down, then go long. Alternatively, take a hedged short position if you think it is headed down eventually, but are afraid it may first visit $80 or some other scary number. The only reason I can think of for a boxed short on this is because borrowing shares may be difficult at times. If you can borrow them now, but are concerned about a post earnings breakout above $60, short and box it now. Then, after earnings see if it heads north and dump the long side when you think it has topped. If earnings news is bad, you can dump the long side right away. Of course, I'm not advising you to do any of these things. No reward, no risk. Bob