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: Skeeter Bug who wrote (4030)	5/6/1998 9:30:00 AM
From: Candle stick	Read Replies (2) \| Respond to of 164684

Excerpt from tonights Fool Portfolio wrap-up: ...Turning an eye to the stocks in the port, Moody's announced that it is rating Amazon.com's (Nasdaq: AMZN) proposed debt at "Caa2." For those who don't understand debt ratings, this is solidly in junk-bond territory. Are we looking at a company confident that it can attain profitability in the future and looking to not dilute its current shareholders? Or, are we looking at a company desperate for cash that can only get money by taking on debt at high rates? How you answer these questions probably answers how you feel about the company's future... ...It should be rather clear that the company has been burning cash in its efforts to grow, and the debt offering certainly shows that the company does not expect to go cash flow positive any time soon. Long story short, the increasing debt and dwindling cash should be a yellow flag for those who hold the stock to, at a minimum, pause and reflect on the company's finances. You can read a summary of Moody's opinion by clicking here... biz.yahoo.com The full text containing this excerpt can be found at: fool.com