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

To: doug doan who wrote (4285)	5/13/1998 11:01:00 PM
From: Norman Klein	Respond to of 164684

CDNow (the canary in the coalmine) I shorted CDNow at $35 and just completed the transaction at $24. Their charts look terrible. I am waiting for them to dip under $20 and then I will short them again, because at $24 they still have the potential to rally. But once they dip under $20 (this is their IPO price), then that is the signal that the big money (their investment underwriter is abandoning them) is leaving and that this company is only going down. I expect this to happen within the next month or even sooner. I will also short them again if their stock rallies (I should be so lucky!!). I consider CDNow to be the low man on the Internet stock totem pole; they have the worst loss to sales ratio and have the most competition. Once they go into terminal mode, I expect the entire pricing structure for the Internet stocks to collapse with them. At that point, I will probably buy puts on Amazon