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

To: Rob S. who wrote (16182)	9/5/1998 2:03:00 AM
From: zax	Read Replies (1) \| Respond to of 164684

DogReprint Follows: "Valuation and Lies" boards.fool.com ---------------- I have never seen more accountant "book majic" than that which spurts from BancAmerica Roberston Scamems and TMF using this "running revenues" formula. Jeff has, on the record, used this method to both claim that AMZN is worth $139 per share and more recently (two days ago) used this accounting scheme (I would call it a scam), as justification for an absurd valuation arbitrarily granted to AOL. These practices are not only dangerous, but now have a proven track record of use in the pillaging and bilking of investors. People who do this might deny what they have done, but, quite simply put, the written record remains. Welcome to cyberspace: Not just a place to sell books, internet service, promote e-commerce and HYPE STOCKS. Welcome to the emerging collective memory and conciousness of mankind. A place where one's own old, and freshly inked words, can haunt one forever. This should not be a place where one's unique ability to speak out of both sides one's mouth at once should get anyone journalistic respect. Here is an article which better describes an alternative to the rampant investor scamming taking place using "trick accounting" methods that several proven hypers are now frequently employing in evaluating stocks. It tells investors an alternative method to avoid the pitfalls of techniques like this, suggesting an alternative and widely accepted valuation principle for startups. Good Reading, -- Eric Excerpt: As author Jeffrey C. Hooke points out in his newly published "Security Analysis On Wall Street: A Comprehensive Guide to Today's Valuation Methods" (John Wiley & Sons, $69.95), speculative IPOs of almost any sort - from the Internet startups of today to the biotech development-stage darlings of 20 years ago - have almost no financial histories from which to project future performance. which fact alone renders predictions regarding their futures problematic. Almost no Internet company has the financial strength needed to ride out a protracted downturn That being so, about the only truly useful historical guide an investor can turn to for assessing a speculative IPO's investment prospects is the rate at which it has burned through its capital in the past. In a rough-and-ready sort of way, this tells you how much time the company has left before it reaches what Sebastian Junger calls in his unforgettable saga of disaster at sea - "The Perfect Storm" - the "zero moment point." That's the point at which a ship in peril transitions from crisis to catastrophe and heads irreversibly for the bottom. Full Text: msnbc.com