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

To: Andrew who wrote (7822)	6/27/1998 8:27:00 AM
From: tonyt	Respond to of 164684

Barrons: "Brown Brothers Harriman -- banker to the fusty elite since the Monroe Administration -- did just that Thursday by initiating coverage of Amazon.com and Lycos, two of the profitless dynamos adored by traders, with "buy" ratings. Over the past two weeks, Amazon.com is up a stunning 33 1/4 to 94 1/4 and Lycos 13 7/8 to 66 1/2 . From the standpoint of earnings and balance sheets of course, the tremendous runup in these stocks and others, such as Yahoo!, is folly. But that doesn't mean there aren't practical reasons why the stocks behave this way -- and these reasons might even make Brown Brothers' call correct on unintended grounds. For one thing, there is tremendous scarcity value embedded in the relatively few Internet stocks. Every dollar that retail investors madly throw after Internet hype must necessarily be funneled into a mere handful of names. Someone who avidly believes the Internet represents the next railroad, telephone and automobile revolution rolled into one is not going to demur at these stocks' towering valuations and decide instead to buy Union Pacific, BellSouth and Ford instead. So, the stocks streak higher. In the case of the star of this group (the more-mature America Online excluded), Amazon.com investors face a pretty severe supply problem. It has 49 million shares outstanding, but less than 19 million trade among the public. Of those, 8.7 million comprised the short position in the stock, according to figures released Wednesday, representing a lot of latent buying interest. What's more, the short position had hardly budged in the previous month, even though the stock had doubled in the interim. This suggests that the shares right now are very hard to borrow, and thus to sell short, removing some selling pressure that would otherwise provide a head wind. So, despite what a paper analysis might recommend, even a bear might find reason to buy Amazon.com, given the tactical picture. As they say in sports after major upsets of Vegas favorites, that's why they play the games."

To: Andrew who wrote (7822)	6/27/1998 8:31:00 AM
From: tonyt	Read Replies (1) \| Respond to of 164684

Barrons (re:M.Dell sale): "Michael Dell last week filed with the SEC to sell 2,200 shares of Amazon.com, which he had apparently received in a distribution from a venture-capital portfolio run by Kleiner Perkins Caufield & Byers, which funded Amazon.com in its early days. It's tempting to see Dell's decision to bail out as a telltale sign. But in Amazon.com's case, the smart money isn't always that smart. Previous Amazon.com sellers this year include, among others, Frank Fischer, CEO of Heartport; the Ford Foundation; George Aposporos, Amazon.com's vice president of business development; Cisco Systems' CEO John Chambers; Intuit chairman William Campbell; Comcast vice chairman Julian Brodsky; Kleiner Perkins partners Thomas Perkins and William Hearst III; Tivoli Systems chairman Franklin Moss; Intel chairman Andy Grove; TCI president Leo Hindrey; former Lotus Development exec Mitch Kapor; @Home CEO Thomas Jermoluk; Perot Systems chairman Morton Myerson, and former Genentech chief Kirk Raab. Smart guys, who all would have done well to hold on a little longer: Amazon last week gained 18 7/16, to 94 1/4 . The stock has more than doubled this month, and tripled since the end of 1997."

To: Andrew who wrote (7822)	6/27/1998 11:15:00 AM
From: Wayners	Read Replies (1) \| Respond to of 164684

It is too early to call a head and shoulders. I called a head shoulders maybe a double top if and only if AMZN breaks down here below the trendline I described earlier. There is no way to predict AMZN breaking that trendline, but if it does, it sets in motion the mechanics of a major topping formation such as a head and shoulders or double top. Take another look at a daily chart and try to draw the uptrendline through 8 Jun, 9 Jun, 19 Jun and 20 Jun. I think those dates are right going from memory here.