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

To: Chi Pan who wrote (3685)	4/30/1998 2:59:00 AM
From: zebraspot	Read Replies (2) \| Respond to of 164684

You long term bulls ask yourself: Would Warren Buffett be buying AMZN at these levels? At any level? Hypothetically speaking, why wouldn't he? Tough Competition. No barriers to entry. Lousy margins. Lousy R.O.E. Cyclical business. Slow growth. Unproven management. Concept stock. No margin of safety at current price. (Negative margin of safety, actually), His is "ancient thinking", too? (I believe he has said that retail is a lousy business, and he does not invest in it, so this has to be hypothetical).

To: Chi Pan who wrote (3685)	4/30/1998 7:43:00 AM
From: RagnBull	Read Replies (2) \| Respond to of 164684

Why doesn't Amazon.com take advantage of its current stock price to issue more stock?

To: Chi Pan who wrote (3685)	4/30/1998 10:37:00 AM
From: Oeconomicus	Read Replies (2) \| Respond to of 164684

Who is going to buy those bonds? Not afraid of default? Come on, people have to look that the balance sheet before put their money in. CP, like I said yesterday - for $275mm, they own Amazon and have written a call option. The people who think they own the company really just own a call option giving them the right to buy the company back from the note holders for whatever the future redemption cost of the notes is. If the notes will accrete to a half billion dollars in five years, consider that the strike price. The market is paying $2.3 billion for the right to buy a $275mm company in five years for $500mm or so. If they can't service the debt in five years, the options become worthless and the note holders keep the company. Where can I get some of those notes?