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

To: Candle stick who wrote (4639)	5/22/1998 1:37:00 PM
From: zTrader_77	Respond to of 164684

Yet she keeps the outperform rating. I guess she wants AMZN to beat estimates. You don't want those numbers to high :^) Maybe she should lower them to loss of 5.00 a share so when they have a loss of 2.00 the stock will skyrocket! I sure wish my other stocks had analysts like this! Kirby

To: Candle stick who wrote (4639)	5/22/1998 2:02:00 PM
From: Oeconomicus	Respond to of 164684

why is 1999 suddenly looking so bleak? Interest expense. Come to think of it, her firm's role as i-banker on the junk debt is probably why she suspended her coverage, but I'd still like to know what her rating was before. The interesting thing about these numbers is that if you back out the higher interest expense for the balance of 1998, the operating numbers are significantly worse also. $326mm less the $75mm bank loan leaves a $251mm increase in debt. At 10%p.a. for about 7.5 mos, the increase in interest expense comes to about $15.7mm. It's actually a little more since the old debt was at a lower rate, so I'll round to $16mm. On 24.2mm shares, that's only 66 cents out of the $1.01 revision. For 1999, the higher interest expense would about cover the revision I think, but that does not diminish the significance. This clearly shows that all this borrowed money will not accelerate revenue growth enough to offset any of the burden it creates. At least not this century. Also note that when you throw in the $55mm of charges they said they will take for the 3 acquisitions, by the end of next year we are talking a negative $4 or so per share book value. Oh, and somewhere around $15 per share of debt. Bob