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

To: Gary Korn who wrote (4125)	5/10/1998 12:14:00 AM
From: H James Morris	Read Replies (4) \| Respond to of 164684

As most of you know, I'm short here with, everyone but Sam. Wall Street continues to be the bull, and I feel uncomfortable with it. We need an unbiased accountant, to give us a cash flow analysis on Amzn. Lets take a bull, can't lose scenario. Amzn keeps growing their revenue @ the expense of all of their competitors. Although, they still don't make a profit, Wall Street keeps rewarding them for revenue and market share gain, and B&N, Borders etc go bust in, say 2001. Is their cash flow gains, enough to keep Wall Streets appetite up? This is the part of the equation, I can't figure out, because they didn't teach us that @ my grad school. If Wall Street, rewards on cash flow, does that mean that the plug will never be pulled??

To: Gary Korn who wrote (4125)	5/10/1998 12:20:00 AM
From: Jan Crawley	Respond to of 164684

Try to imagine removing $70 from your wallet each and every minute of the day, day and night, day after day after day. Gary, I would not want to own any part of that Wallet! May I add that after paying interests day after day after day, Amzn has to pay $530M balloon payment at the end of the period. Thanks for all the detail calculations, it's an eye opener!

To: Gary Korn who wrote (4125)	5/10/1998 12:30:00 AM
From: Gary Korn	Read Replies (2) \| Respond to of 164684

I'm not sure how the new loan and interest payments will end up being reflected on the books, but it seems to me that net interest expense should be pretty nasty going forward. The situation will worsen each quarter, but here is just the first quarter of the new debt load: $326,000,000 cash infusion from debt (assuming gross proceeds = net)* + 41,000,000 cash remaining from IPO (cash and short term invest.) - 75,000,000 pay-off of loan =$292,000,000 cash on hand on 5/1/98 How much cash is being used for the new acquisitions? 1 of these (can't recall which one) requires a cash payment. Assume $55,000,000, which is about the same as the deferred charge. (If only the amount would be disclosed, I could be more accurate about this.) $292,000,000 cash on hand - 55,000,000 acquisition payment =$237,000,000 cash on hand on 5/1/98 $326,000,000 starting face value of loan (it increases each 1/2 year) -$237,000,000 cash on hand =$ 89,000,000 net debt Interest on $89,000,000 net debt is about $2,225,000 per quarter = 9 cents/share. Compare that to 1Q98, which had net interest expense of only $385,000, or 1 cent/share. Gary Korn * The $326,000,000 is gross proceeds. Anyone have any idea how much Morgan Stanley Dean Witter will take off of the top???