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


To: Candle stick who wrote (1594)2/17/1998 12:50:00 PM
From: Gulliver  Read Replies (2) | Respond to of 164684
 
I'm new to shorting, and can't do anything right this right now anyway (broker can't get any AMZN -- am switching to Datek). Would like your inputs on the following:

1. Deutche's $75M debt agreement with AMZN stipulates they get 1/2 of cash raised in secondary offerings. Seems likely they'd push to get a secondary out so they can get their $ back. Is this a common method of debt retirement?

2. I'm not familiar with retail (and the December quarterly could put a different light on it), but I don't see how AMZN can pay their operating expenses, handle their new leases, AND retire the debt they've taken on. The cash burn is too high. Does anyone see a different picture? If so, why?