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

To: Alomex who wrote (1553)	2/11/1998 6:41:00 PM
From: Don Westermeyer	Respond to of 164684

forward P/S ratio of 1.5 for a rapidly growing company. I may have been a little excessive there, but even 1.5 X sales is still not good if you can't make a profit at it! Even if they cut their advertising in half, no profit! It is easy to double sales in the beginning, and much harder later. Look at it this way, what would the price be if no shares were held by insiders and freely tradable on the market? AMZN will need a secondary or continue to take out unfavorable loans if they want to do any kind of expanding. Right now they are still loosing $30 million/year with almost no book value. The terms on the loans they get are likely to get even worse. As long as BKS and BGRP don't get too aggressive, AMZN longs need not worry. I obviously don't think that will happen though.