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

To: zebraspot who wrote (4981)	6/3/1998 10:06:00 PM
From: Oeconomicus	Respond to of 164684

Z., thanks. Sounds like no nasty surprises. Bob

To: zebraspot who wrote (4981)	6/3/1998 11:01:00 PM
From: Candle stick	Read Replies (1) \| Respond to of 164684

AMZN filed a form S-4 today to register 5 million new shares for sale. They will most likely use these shares to acquire other businesses, but I believe that the receivers of these shares will not be restricted and could sell immediatley....we still have heard no financial details of the last 3 aquisitions, and know nothing about how much they will increase the losses this quarter...AMZN is not very forthcoming with its finances and you should beware of some surprises coming.... As for the 5 million shares, that is 10% of the shares outstanding and about 20% of the float....that is a huge amount of dilution......technically AMZN now has 55 million shares not 50 million....that means more hands to share the pie...if there ever is any.....it is called DILUTION, and it makes your current holdings worth less...I always said that AMZN would be forced to dilute current shareholders because they could never get a bank loan, and I was right. No bank will lend them money...they lose money and they have NO PUBLISHED BUSINESS PLAN.....they get the money from YOU, the shareholder, by selling more shares and making your holding worth LESS...this is no different than if they had done a secondary, sold the 5 million shares on the open market and then made the acquisitions in cash...instead they make the acquisition with stock and then the acquired ones dump the stock....six of one, half dozen of the other....the net result is a lower stock price........;^)