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: llamaphlegm who wrote (10931)	7/20/1998 6:44:00 PM
From: llamaphlegm	Read Replies (2) \| Respond to of 164684

BTW team: CNBC sited a study today, i believe out of the "marshall school of business" at usc -- i could be butchering the school name -- which claimed (the author of the study was interviewed) that the current methods and technologies for logging web hits is wildly inaccurate and that in general, the number of hits to any one site is underestimated, while the time spent at any site and the number of pages hit at any one site is greatly inflated. Interesting -- LP

To: llamaphlegm who wrote (10931)	7/20/1998 6:45:00 PM
From: tonyt	Respond to of 164684

>If so, wouldn't the acquired be extremely reluctant to accept stock as inflated as AMZN? They may not have a choice. The 'acquired' may need to be acquired. >And if so, wouldn't they sell it as soon as they get their little hands on it? They may not be able to right away. The stock could be restricted. >My point is that maybe an acquisition announcement would actually feed the bears. It might for other reasons. Buyouts are sometimes 'painful' to integrate. Sometimes their easy (i.e. buying an on-line software reseller would be easy). Any buyout would increase the shares o/s, and that alone might feed the bear (but with amzn, it probably won't)

To: llamaphlegm who wrote (10931)	7/20/1998 7:00:00 PM
From: Rob S.	Read Replies (3) \| Respond to of 164684

Amazon might go our for a secondary offering. A rumor I have heard has it that their investment bankers have broached the subject. They could see the stock price and market enthusiasm as being at a pinacle. The offering would allow them to retire the near junk-bond status 10% debt (Moody's rated it as speculative and that's why it cost Amazon 10.1%). It's also likely that insiders will seize on the opportunity to tender some of their shares and take a couple hundred million to the bank (how tempting that must be). The remainder of the offering would be used to bolster the current cash reserves, pay for the needed build-out of distribution and redundant server centers, increase inventory levels, and do some acquisitions. A word of caution to short-sellers; although the underlying reason for the secondary would be to pick a plum, the active participation of the major retail brokerages may spur the price even higher, (institutions will stay away except for, perhaps, a quick turn). The rumor has it that the target price would be set at 140-150/share. The net effect of the offering would be a short-term pump on the stock followed by the effects of dilution and selling pressure, probably setting up a great short-selling op. Investor relations at Amazon.com declined to comment on the rumor, saying only that they would not confirm or deny it.