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

To: Tom D who wrote (3426)	4/25/1998 9:44:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

I just don't believe that Bezos et al are stupid. Some deal is going to happen, and we can only make guesses about what it is. Tom, No one called the Bezos stupid. However, retail is a diificult business and AMZN is undercapitalized. Panic is setting in at management since the Bank was not willing loan more than $75 million. That is the value banks are placing on AMZN. They still need more funding. Glenn

To: Tom D who wrote (3426)	4/25/1998 11:14:00 PM
From: Gary Korn	Read Replies (5) \| Respond to of 164684

Either the management is irrational, OR these actions are part of a bigger plan that we cannot see at this point in time. Tom, I think AMZN management rationally determined that, given its current burn rate and lack of profits, they simply will not have $75MM cash to pay-off a $75M balloon in 32 months, and further that it would be easier if they did not also have to pay about $1.5M in interest every quarter. Therefore, I think that they paid (in terms of higher interest and a higher total obligation) for the opportunity to put off the balloon payment and to put off interest payments. Perhaps management has concluded that a secondary offering (raising cash through share issuance) would hurt the stock price more than will the new debt-deferral plan (even though that plan is quite costly). Gary Korn Gary Korn