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

To: Candle stick who wrote (2554)	3/30/1998 7:14:00 PM
From: Ken Pomaranski	Respond to of 164684

Stickman, I thought you were well versed in the market. This stuff is typical for this company, and in fact, ALL of this is mentioned in the prospectus dated May 15th, 1997. No new revelations here. In fact, I hope your 'new found data' will pile more shorts on board. I'm not sure if: (1) you really think this is the first time AMZN ever printed these statements. - OR - (2) you are pretending this is the case to validate your short position. Yes, there is risk, we all know that. But, I will not stop playing this one long until the market tells me to stop.. (actually, the stock is acting a bit tired now. A break through 88 would be fun...) kp

To: Candle stick who wrote (2554)	3/30/1998 7:19:00 PM
From: Ken Pomaranski	Respond to of 164684

From the Prospectus dated 5/15/1997: << Due to the foregoing factors, in one or more future quarters the Company's operating results may fall below the expectations of securities analysts and investors. In such event, the trading price of the common stock would likely be materially adversely affected. >> Thanks for posting one year old data!! kp

To: Candle stick who wrote (2554)	3/30/1998 10:16:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 164684

Observations from the 10K filed 3/30/98: 1. Virtually all warnings were cast in terms of "may." Okay, so that is just a warning of what might happen. However, one warning explicitly used the term "will": "Although the Company has experienced significant revenue growth in recent periods, such growth rates are not sustainable and will decrease in the future." 2. Two separate comments, read together, are of great significance to me. First, the company states that it has enough cash for 12 months: "The Company believes that current cash and cash equivalent balances and short-term investments will be sufficient to meet its anticipated cash needs for at least 12 months." Then, the company states that losses will continue beyond 12 months into the "foreseeable future": "[T]he Company believes that it will continue to incur substantial operating losses for the foreseeable future and that the rate at which such losses will be incurred may increase significantly from current levels." Then, the company states that the remedy could well be dilution: "If cash generated from operations is insufficient to satisfy the Company's liquidity requirements, the Company may seek to sell additional equity . . . ." Furthermore, a $75,000,000 loan taken out on December 23, 1997, if not promptly repaid in installments over 3 years (which seems quite unlikely given the company's losses), will automatically result in dilution totalling 750,000 shares over 3 years, or over 3% of shares outstanding. In sum, it seems that there is considerable likelihood for share dilution to occur by 1999. Gary Korn