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

To: Mark Fowler who wrote (6975)	6/21/1998 8:50:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Glenn only four qtrs. of steady earnings. Amazon.com's bricks-and-mortar competitors may be able to show earnings right now but can they underprice Amzn in the short run. That would put their land-locked businesses in trouble, since the bricks and mortar part isn't a cash cow that can feed the cutthroat Internet price leader indefinitely. Mark, The brick and mortar operating is now a cash cow. Expansion is not necessary. BKS can finance their online operation from the traditional business without incurring debt. AMZN cannot. I'd be much more interested to see if they can get their asset turnover up close to Amzn's. Because asset turnover is due to operating acumen, Amzn's asset turnover is 16.5 to Bks of 3.28. Asset turnover is many times more important than operating margins and earnings in this current environment. Walmart kick the hell out of k mart on this point. The asset turnover issue is way overblown. AMZN has a high turnover because they inventory very little. They use jobbers to supply the inventory. The jobbers charge a premium for that service. Therefore, AMZN will never be able to match the gross margins of BKS or BGP. BKS can increase turnover by reducing inventory but that will reduce profits. The bull AMZN argument is self defeating on this issue. Glenn

To: Mark Fowler who wrote (6975)	6/21/1998 11:39:00 PM
From: slipnsip	Respond to of 164684

That would put their land-locked businesses in trouble, since the bricks and mortar part isn't a cash cow that can feed the cutthroat Internet price leader indefinitely. Oh, I forgot, AMZN's net business is now a cash cow.. Bet I could sell a whole lot of 1998 Chevy Corvettes on the webb for 25 grand a piece... The hell with the margins, I will be the low cost seller and I will be known world wide! People will fly here from all over the world to drive one home! Think of the "BRAND" I will establish for myself! HURBANIS MOTORS