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

To: Wayners who wrote (9590)	7/8/1998 8:11:00 PM
From: umbro	Respond to of 164684

Wayne, thanks for the well-thought-out observations on shorting, and the possible price action in Amazon. On a couple of your points: why short AMZN when a doggie stock like APM will provide lower risk? I think the difference lies in trading versus investing. The APM short is akin to an investment ... longer term in outlook and deliberate. AMZN is offering 7 point moves in an hour, and effectively more than that with options. Philosophically, I don't short stokcs (not often), because I don't like "Entremed moments" (ENMD - the pharm that opend at 80, from the previous day's close of 15/so), and margin calls, and losing the farm. I also don't think naked option shorts are a great idea, and therefore prefer spreads. With AMZN, I think it should be traded (emphasis on traded) both long/short because the battle isn't over and could go on for a month or more. My main reason for harping on fundamentals is that I just hate to see new investors buying in at these levels (actually, any price above 50), because I think the risk is much higher than the reward. It's a tough lesson to learn: a great company (Amazon gets a lot of my book buying) is not necessarily a great stock.