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

To: Candle stick who wrote (3648)	4/29/1998 2:55:00 PM
From: Gary Korn	Respond to of 164684

The stock price has completely decoupled from the reality of operating a business. At some point the 2 must converge again CS, I think that, absent a management faux pax beforehand, the two will converge during a market correction. Just last week, AMZN was down 20 during the mini-correction we just experienced. I think that the bull case for AMZN that I posted last night works while the market is hot. However, AMZN showed last week that it will cool off and decline rapidly during a market correction. Gary Korn

To: Candle stick who wrote (3648)	4/29/1998 3:02:00 PM
From: Tom D	Read Replies (1) \| Respond to of 164684

Good post, Candle Stick. We are getting to the heart of our disagreement. To compete with AMZN, a company must budget huge sums of money (>$100M per year) for marketing and discounts. The longer that potential competitors wait, the more difficult it will be. First-mover advantages are significant. Competitors must pry AMZN's customers away from them. I don't know why Borders is still even pretending that they are going to try. I don't see financing as a problem for AMZN. They'll probably wait for the share price to double again, then issue a couple million shares in a secondary offering, and then presto! $400M in cash, with less than 10% dilution in market cap. That $400M should carry them to the time where they have bled all their competition dry. (Unless Bertlesmann does something.) Then they will be able to make small increases in prices. They will still be able to sell below the prices land-based retailers charge, and make nice profits on enormous sales. Then they will be a domineering on-line retailing behemoth. Best Regards, Tom D