To: Candle stick who wrote (2768 ) 4/3/1998 10:26:00 AM From: William T. Katz Read Replies (2) | Respond to
After some reflection last night, I took a mental step back to look at this market and AMZN in particular. Looking at the numbers, mine and what the street expects and what AMZN says in their filings, I can really make no case for 80% of this valuation. Amazon's risk is high with major players entering their arena .. don't think that AMZN market cap meeting B&N isn't a slap in B&N management's face, and B&N has already had a nice run-up in stock price as well.reality and the market, and (3) bearish given a possible Japanese crash and the ultra-bullishness on Wall St. now. I'm short right now with equal portions at 60, 73, and 94. I'll probably save my last salvos for prices above 100. I plan on holding my position over a year.no barrier to entry, but I would say there are easily surmountable barriers for any book/publishing company that has deep pockets. Hence, there are major entries from Bertlesmann and Cendant.currently valued at over 2x the P/S as B&N ... that means the idea that AMZN will have much better margins is already built into the price 2 years from now. Also, Amazon must build warehouses. They must stock books to compete with delivery times of the big sellers. How much better margins will Amazon really get?
