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

To: fedhead who wrote (18082)	9/23/1998 8:49:00 PM
From: OtherChap	Read Replies (2) \| Respond to of 164684

Lower interest rates are BAD for Amazon and Yahoo for the following simple reason. According to SEC filings, Yahoo made 96% of its "profit" last quarter from interest income including treasury bills and money market funds. If interest rates go down, then Yahoo's "profits" will decrease. The same goes for Amazon, which makes a substantial amount of interest income from their 400 million dollar IPO/junk bond cash. Am I the first person to notice this or what?

To: fedhead who wrote (18082)	9/24/1998 12:45:00 AM
From: Rob S.	Respond to of 164684

I have been looking very closely at what the inet leaders that NZMA is closely correlated with and what the inet indexes are "saying". They tell me "major short opportunity is developing and sustained new highs won't be made soon." Of the stocks in the group, I think AOL and Yahoo have about the most steam left to run. The market has at least a partly different character than it did during the last major move - when NZMA first moved to the 140 level. Now there is at least a small bit of concern about earnings and margins. Part of the reason Yahoo! is up so much is because they said in their cc that margins were up higher than analysts had been modeling. XCIT is up on the DELL deal but will unlikely move up more than a few days when people realize that this realy doesn't mean that much to their bottom line. The inets index will probably move up into next week - but I expect more fickle action out of Amazongonenutty.com than out of companies that are able to talk about current or near-term profits. Who knows exactly what the timing will be? If you know someone - point them my way - I can use their advice. Like I posted earlier today - now is the time to START to sell against the move up; using strategies to protect yourself by taking advantage of bear spreads and other mechanisms until a reversal is more certain is probably the way to go for now. Another strategy is to start selling short calls and then "roll them over" if the price doesn't start to decline soon enough. This means to buy back the calls at a loss and simultaneously sell the same $ amount of calls further out in time and maybe at higher strikes.