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

To: Rob S. who wrote (19520)	10/1/1998 5:50:00 PM
From: OtherChap	Read Replies (5) \| Respond to of 164684

That post about the Vinik hedge fund was fascinating. I was not aware that AOL AMZN and YHOO comprised the top three holdings of his hedge fund. If it is true that ALL OF THIS GOD DAMNED RUNUP SINCE DAY ONE was caused by him manipulating the markets with pyramid-scheme type leverage (just like long term capital, the ratio was like 250 borrowed dollars for every 1 dollar in actual margin equity).. then.. well, this could be INCREDIBLE! If Vinik has been manipulating these dogs up, this would explain the dow tick-for-tick correlation regarding the dow industrials index (to make the action at least appear to be "market related") and the EXACT overlay of Yahoo and Amazon's charts.. go to www.quote.com and check out a chart of the two over the last 6 months. Except for the actual price, the ups and downs are nearly EXACTLY the same. And I do mean EXACTLY. AND it would explain how multiple 100 block trades could actually just be Vinik splitting up trades ("sloppy" was the term used) to make it easier to drive the bid up.. This also means that if hedge funds around Vinik are collapsing, he is going to want to get out NOW while he still has insane profits. Combine the actual number of shares he would sell, and the shares he would doubtlessly sell short beforehand (or buy puts), and then remove the artificial support he has been giving all these months, and you have all the elements to cause AMZN and YHOO to UTTERLY collapse. We're talking back to under 20 bucks, maybe even 10. Perhaps this is what happened to Netscape, its pattern was exactly the same as AMZN and YHOO up until the week it plunged from 180 to 50 then to 20.. Netscape still has better revenues and earnings than Amazon, but is trading for a fraction of the price. You'd think that Netscape could command a huge price premium like AMZN and YHOO wouldnt you? Anyone ever wondered why it doesn't anymore? It's probably because Vinik is no longer involved. AOL I think has more support on its own, because after all it does generate over a billion in revenue a year and has a profit (even if it is miniscule) but don't forget its P/E is still over 150. Thank you for the insight, and please don't lurk too much in the future.. Your's was the most interesting post I've read on this board EVER. In fact, I think your post was worth the price I had to pay 6 months ago to join SI, all by itself!!!!