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

To: Mark Myword who wrote (3977)	5/5/1998 3:51:00 PM
From: Candle stick	Read Replies (1) \| Respond to of 164684

THANKS William, I like this part "The money raised will be used to repay a $75 million term loan, pay for future operation losses " not a very optimistic future, huh? and this The notes are rated Caa2 by Moody's Investors Service Inc., three steps above its lowest rating. A real impartial rating company (Moody's) has essentially said that AMZN has little value and is an incredibly risky investment, and rated the debt as junk. The stock is selling off to the lows going into the close.......;^)

To: Mark Myword who wrote (3977)	5/5/1998 4:14:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Moody's rates Amazon.comsnr discount notes Reuters Story - May 05, 1998 12:46 %AAA %US %USC %ISU %BUS AMZN V%REUTER P%RTR (Press release provided by Moody's Investors Service) NEW YORK, May 5 - Moody's Investors Service assigned a rating of Caa2 to the $275 million (net proceeds) senior discount notes due 2008 of Amazon.com, Inc. The rating outlook is stable. The rating reflects the uncertainties about the company's ability to achieve profitability in the near to medium term, and concerns about its very low gross margin as a result of its commitment to low prices, its high merchandise costs due to heavy reliance on sourcing from distributors, and its exclusive use of credit card sales. In addition, the rating recognizes a high level of fixed expenses due to the company's early stage of development, the high fixed cost of advertising "real estate" on the World Wide Web, increasing competition both on and off the Internet from well-capitalized retailers, and the uncertainty of the return from future investments in capital, new products, or acquisitions. The rating also considers the benefits derived from the company's advantage as the first significant Internet-only retailer. These benefits include strong name recognition, its exclusive rights to attractive advertising "real estate" on popular World Wide Web sites, and widespread coverage that the company receives in financial, trade and consumer circles. All of these benefits have led to explosive sales growth to over $150 million in annual revenues in less than two years. The company also has the potential to generate advertising revenues from its own Web site. Amazon.com will have extremely high financial leverage after the note issue, which will require significant growth in revenues and profitability to eventually service the debt. The company's ability to achieve these goals is tied to significant uncertainties, which include the growth of Internet commerce, competition from on-line and traditional retailers, taxation and other government regulation, and the company's ability to improve its operations, among other issues. Proceeds from the bond notes will be used to repay a $75 million term loan closed in December 1997, and to fund future operating losses and business development, which could include acquisitions. The notes are senior obligations of Amazon.com, Inc., and are subordinated to existing and potential obligations of current or future subsidiaries. The notes will not pay cash interest until 2003. Amazon.com, Inc., headquartered in Seattle, Washington, is a retailer of books and music exclusively over the Internet. The company had revenues of about $148 million in the year ended December 1997.

To: Mark Myword who wrote (3977)	5/5/1998 4:23:00 PM
From: Jan Crawley	Read Replies (3) \| Respond to of 164684

New York, May 5 (Bloomberg) -- Amazon.com Inc., the online bookseller, raised $325.987 million by selling 10-year junk-rated The zero-coupon notes priced at a discount of 61.507 percent of par. The notes don't pay interest until Nov. 1, 2003 Thank you for the information. Does this translate into: 1. The face value of the junk bond = $325.987M / 61.507 percent = $530 M total debt issued ? 2. Amzn's financials will record the amortized interest liability(as incurred) on annual/quarterly basis, starting next quarter? Jan