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

To: Gary Korn who wrote (4095)	5/8/1998 6:38:00 PM
From: H James Morris	Respond to of 164684

Gary, correct me if I'm wrong. What I'm reading between your lines is, Amzn has a casino thats publicly traded. The casino decides that they will lose money to bring in gamblers. Like maybe, @ black jack, they will let the dealer's down card be up, instead of down. They also decide, that on craps, if the shooter throws a 2,3 or 12 on the come out roll, they won't lose. After months or years of doing this, they report that this casino is the most visited and crowded casino in America. Wall Street rewards that casino with the highest stock price. Now if the casino can detract Wall Street from its actual bleeding losses, because they got a $325mil junk loan from the public, they can't lose! Can they? Well if they can bankrupt all the other casinos, and then go back to the way, the game was always played. Could they win? Gosh, I don't think that the other casinos will go away that easily. The point is, as I've said before, I'd rather be a book buyer than a book seller! Have a nice weekend.

To: Gary Korn who wrote (4095)	5/8/1998 7:23:00 PM
From: Mark Myword	Read Replies (2) \| Respond to of 164684

re: >> what AMZN may want to do<< I think what they want is to pump the stock price up as high as possible , and cash out fast. They can always issue more bonds in five years , if it comes to that. That consideration is in the distant future ; Amazon's immediate problem is the cash needed to survive and maintain the growth scenario , not sink into oblivion. They have now been granted the cash to attempt to do that , by a bunch of bond buyers who must have flunked the risk/reward part of their basic training. I would rather be a long here , and have the equity upside , than to be a lender to a cashburner that may dissolve into nothing. When a company goes bankrupt , the bondholders can be more-or-less totally wiped out ; happens all the time. This bond issue increases the chance for Amazon to be a L/T player , and who knows , maybe even turn a profit eventually. That doesn't , however, change the basic fact that this stock is wildly overvalued and likely to correct very significantly.