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

To: Alomex who wrote (1316)	1/22/1998 5:08:00 PM
From: Don Westermeyer	Read Replies (1) \| Respond to of 164684

Funny you should mention IOM, down big time after hours on its earnings report! Amazon needs is an investor willing to wait six years (is Buffet in?) and all shorters would lose their pants on this one. I doubt the price of AMZN stock will be one nickle higher in six years than it is today! Unless ofcourse you think BKS and company will just roll over and let AMZN steal their market away. Be careful about using growth rates of startup companies too far into the future!

To: Alomex who wrote (1316)	1/22/1998 5:22:00 PM
From: Candle stick	Read Replies (1) \| Respond to of 164684

>>>The only thing Amazon needs is an investor willing to wait six years (is Buffet in?) and all shorters would lose their pants on this one...<<< Or, you forgot to mention, one insider to sell, perhaps just 3 million shares out of the 19 million held (15%) to DOUBLE the float......then the shorts would have no problem covering, and in theory the stock would be worth half as much, or 30$, no?........;^)

To: Alomex who wrote (1316)	1/22/1998 5:59:00 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 164684

Yeah, yeah. And I said here that given seasonality on top of decent growth, 50% would be a disappointment. The growth was impressive I'll grant, but hardly surprising. Gee, now they only need 90% per annum growth for the next three years to reach $1 billion in 2000. The details are interesting though. Gross margins ticked up a fraction to 19.5% from 18.9% last Q, but are still far short of the year ago 22.3%. Operating expenses range from the relatively fixed but small G&A line to the very significant and very variable Mktg & Sales line. With a little work, might be able to figure out how they'll "make it up on volume". Hard to believe though that one could sell $66 million of books and lose more money than on $38 million of sales. Another interesting note - from 9/30 to 12/31, liquidity, measured by net current assets (current assets less current liabilities and debt), dropped in half from $32.7mm to $16.8mm. The net loss is part of the change and fixed assets (the distribution centers) used more, but they also booked deferred charges of $2.2mm. Anybody know what that is? Had it been in expenses, the loss would have been 48 cents. In any case, contrast this real liquidity with Bezos' comments, bragging about increasing cash and investments to $120mm. Well, I guess none of this matters anyway. Report big sales and squeeze the shorts. Who cares if they can ever make money. Wanna see what happens if sales are flat for a quarter (q-to-q)? Stick around. Bob