Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Glenn D. Rudolph who wrote (7972)	6/29/1998 8:16:00 AM
From: Narotham Reddy	Respond to of 164687

Bid starts at 93 5/8.. On a Vol of 2.3K

To: Glenn D. Rudolph who wrote (7972)	6/29/1998 3:16:00 PM
From: JimieA	Read Replies (2) \| Respond to of 164687

Glenn; Thank you for your description of the use of jobbers vs. direct purchase & inventory retail model. Although I think that AMZN is hoping that the model will improve as they buy & inventory more of the fast moving books and increase volume of purchases. This may turn out to be just hope. I may work some numbers to see how much of an advantage AMZN has. Now for the cash situation. We may be partially in agreement on cash situation! Assuming net bond proceeds is $225M Losses of $85M in 1998 and $50M in 1999 it would still leave $90M left plus cash on hand at 3/31/98 of $117M Leaves $207M going into 2000. This is two years from now! Hmmm...looks to me like no cash problem! We are using the estimated net losses for the use of cash, but since the new bonds are zero coupon, about $35M of interest expense a year will not require a cash outlay. I anticipate that some of this will be used to increase inventory and property. I just do not see a cash crunch. But I could be wrong :-(