Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Gary Korn who wrote (3448)	4/26/1998 11:54:00 AM
From: Glenn D. Rudolph	Respond to of 164684

So, if AMZN did have the option to recap (but chose not to), perhaps it elected to replace the old note with one with more liberal terms so that -- with the 200MM new shares it seeks -- it can effect some kind of merger or acquisition (something that was prohibited). At the moment, I can't think of another reason for the combination of (1) 200MM new shares and (2) replacement of a good loan with a bad loan. Gary and Tom, I appreciate this discussion very much and it helps me think through the move.I wish typing was not as difficult so I could be less terse. I am not angry or upset with any discussion I am just trying to say as much as I can in as few words as possible. There was a waste of words:-) You are both so conscientious in looking over the terms of the loan and the reasons for the change. My opinion still differs. The above opinion arrived at by Gary is compelling and is of course, possible. I believe cash flow did not increase as projected in Q1 98 due to the stronger presence of BKS.The numbers at AMZN are all in except not made public until this Tuesday I belive. We know there will be no earnings but revenue, cash on hand and debt will paint the picture. I believe it to not be a pretty picture. Management needs to have in place a viable option to sell to shareholders. Management did dancing as best they can. Q1 of 98 is typically a slow quarter in the book business and this will be the first slow quarter that AMZN had to compete heavily with BKS. This was damage control as best they could do for now. Thank you for listening. Glenn