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

To: Mark Myword who wrote (4037)	5/6/1998 12:15:00 PM
From: Candle stick	Read Replies (2) \| Respond to of 164684

The best thing to do is buy the bonds and short the stock. I think that this is what is going on. So long as AMZN does not become defunct, the bond holders will get paid. How? By dilution! AMZN will sell stock, every year for 5 years to raise cash in small increments to be able to pay the notes off. The dilution will decimate the stock over time, but the noteholders get paid 10% interest. Five years from today, stockholders will have lost 80-90% of their value, but noteholders will have made out handsomely, 10% interest plus the short on the stock. I fully expect that the bulk of the short position going forward will be from the noteholders..............;^)