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

To: Candle stick who wrote (2457)	3/25/1998 3:37:00 PM
From: Don Westermeyer	Read Replies (2) \| Respond to of 164684

I wonder if 'thestreet.com' article is why the stock is lower. Either that or the stock is in weak hands and following the market lower.

To: Candle stick who wrote (2457)	3/25/1998 4:32:00 PM
From: Oeconomicus	Respond to of 164684

Amazon doesn't have much in the way of traditional overhead, so despite its losses it's already cash flow-positive from operations. Interesting claim - would that be found in the current fiction section? EBITDA can't possibly be positive - they lost $9.9 million from operations last quarter and even if they depreciated all their fixed assets to zero in one quarter they wouldn't have enough depreciation to swing them to the plus side. How do they get the idea cash from ops was positive? Well, by squeezing $16.2 million out of non-cash working capital accounts. For those who avoided accounting classes in school, they let their payables and accruals run up a whole lot faster than inventories and prepaids. That's fine for cash management (if you aren't losing discounts or pissing off vendors) and is consistent with GAAP terminology, but it's not sustainable and nobody in the investment world would consider them cash flow positive is they bothered to look at the numbers. I assume Herb didn't.