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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: dealmakr who wrote (10708)6/30/1998 12:31:00 AM
From: Roger A. Babb  Read Replies (2) | Respond to of 18691
 
David, what I meant was that AMZN will try to convert some of its market cap to cash by selling more shares, need to do this because they have no earnings and are burining cash.



To: dealmakr who wrote (10708)6/30/1998 6:50:00 PM
From: BelowTheCrowd  Respond to of 18691
 
> If AMZN follows AOL's lead with some dilution that they may show some earnings sooner <g>

Sure. It's how YHOO showed earnings so early in their lifetime, and part of the reason many internet companies' losses aren't substantially worse:

* Sell lots of stock.

* Put the money in the bank, or invest it somewhere.

* Show improved earnings due to a bigger "earnings from investments" line on your income statement.

It has nothing to do with the viability of the business, but it looks good on the bottom line.

mg