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


To: Glenn D. Rudolph who wrote (4138)5/10/1998 12:15:00 PM
From: H James Morris  Read Replies (1) | Respond to of 164684
 
Glen,
<but where is AMZN going to a find a place to put this money that pays 10%?>
Good question. Stock buy back maybe??



To: Glenn D. Rudolph who wrote (4138)5/12/1998 1:10:00 PM
From: Walter High  Respond to of 164684
 
Glenn,

I know I am a little late responding to your post, but I got behind on reading these messages. Here is how Amazon is going to get a really big return on the cash it has on hand and eventually get out from under its debt load:

1) Amazon buys its own stock on the open market when it drops into the low 80s, gradually driving up the price;

2) When the price gets into the high 90s, they make the shares available to all of you bears to short since you will get frenetic about shorting every time the price reaches close to 100;

3) Once the shorts have sold off all the shares available, Amazon asks that their shares be moved back from a margin account to a cash account causing the brokers to call in the shorts;

4) The shorts have to scramble to cover and Amazon sells them the necessary shares on the open market in the high 90s.

5) Amazon walks away with 15-20% profit in the space of a week or two.

6) Stock drops back into the low 80s, and process repeats itself.

(OK guys, this is a joke. Don't flame me about how ridiculous this model is. Just thought you might want a little entertainment!)

Walter High