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

To: Mark Myword who wrote (3984)	5/5/1998 7:46:00 PM
From: Jan Crawley	Respond to of 164684

Thanks again for your answer and calculations. This means that their balance sheets will not look very attractive; but Amzn will have sufficient working capital for the next few years; However, If their current revenue/cost ratios do not improve, they would be under more close scrutiny due to this junk bond/loan obligations? I guess the lenders consider Amzn likely to be an on-going business five years from now. which is a reasonable risk; but it is definitely much more than a reasonable risk for the current share price of over $90. Amzn may deserve a share price of around $90 (future split(s) considered) five years from now if Amzn's operating profits, before interest expense of course, can well afford the debt service of this junk bond at that time. Jan p.s. Have learned a lot from your posts. Thanks.