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

To: Glenn D. Rudolph who wrote (7910)	6/28/1998 9:35:00 PM
From: JimieA	Read Replies (3) \| Respond to of 164687

Glenn; Maybe I have bought it. But, I don't think it is a line! The numbers come right from AMZN's financial statements. The same fundamentals the short sellers are saying should be looked at! I may not know retail, but I can read a financial statement. 1. Who is financing the servers and software development? All AMZN's computer h/w & s/w are either included in the $10M property account, expensed as R & D or lease payments. All according to GAAP. What more can you ask for? 2. Why is Amazon.com finding it necessary to carry more inventory? I assume AMZN may in the future carry more inventory to better service their customers. Faster service. As well as increase gross margins as they will not have to buy as many books through a distributor. AMZN has only $12M of inventory generating over $87M in sales for the most recent quarter. That's $29.93 of annualized sales for every $1 in inventory. B & N gets $3.11of annualized sales for each inventory dollar. Borders gets $2.36 of annualized sales for each inventory dollar. 3. Amazon.com has burnt all the cash from the IPO and then some. I do not think this is true. AMZN had at 3/31/98 $117M in cash and only $77M in debt. That tells me that about $40M is still available from the IPO. And then they added a net of about $250M more in cash! 4. Amazon.com has increased the number of warehouses via lease. Why wouldn't they? Business has been increasing every quarter. Again, sales generated per dollar of property: AMZN $35.76; B & K $5.55 and Borders $5.58. Can't you just admit that the AMZN etail model is just more efficient then the normal Brick and mortar retail. 5. Hmmm...looks to me like they have a cash problem. I do not understand how you can come to this conclusion. Again a company with $117M in cash adding a net of $250M more during the most recent quarter. And this cash will not cost them any cash out for a few more years. Compared $367M in cash to losses generated (about $10M a quarter) or additional investments in Inventory or Property and it is clear that there is no cash problem. Of course, I may be wrong ;-)