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

To: Gary Walker who wrote (22037)	10/17/1998 1:09:00 AM
From: MrLuckyman	Read Replies (1) \| Respond to of 164684

>The best part: Amazon's junk bonds, which were issued in May, have fallen 24% to a price of 48, while its stock has booked a gain of more than 100%. With a yield of 13.5% -- nearly nine percentage points above Treasuries -- "it trades like Guatemala," jokes one short-seller. While the bonds' decline is part of an overall swoon in junk bonds, it also says that "those who carefully assess the risk of not getting paid off are terrified," the short-seller adds. "This is trading like a disaster, yet the equity holders, who are junior in their claim on the business, value the company at $5 billion." Nobody's suggesting that Amazon is going out of business, but when a company's bonds are falling and its stock is rising, investors should beware.<<