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


To: Rob S. who wrote (12354)8/2/1998 8:36:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 164684
 

Good question. They could pay it off with a secondary offering and let the new
stockholders absorb the junk. My post was awfully generous. I think the earnings
dillution caused by stock options and increased float that becomes available plus the debt
and increased competition factors will probably kill any chance for profits


My point is that gross margins will never be enough to service the debt. Marketing cannot stop. I keep wodering why people believe AMZN will eventually cut marketing expenses.

The profits that speculators
envision I give a -0.0% chance of happening; better chance that they will stay negative
and the company will be sold to pay off debtors, including the Senior Debt holders.


This is my conjecture and it will be debated for a long time. Time will tell, however.

Glenn