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

To: MrLuckyman who wrote (22043)	10/17/1998 10:14:00 AM
From: M. Frank Greiffenstein	Respond to of 164684

Larger interest... Luckyman, the yield can go up and down, depending on the fate of AMZN bonds in the market place. They trade no differently than federal bonds. At last word, AMZN bond yield was up to 14%, bond price had fallen to $24. DocStone

To: MrLuckyman who wrote (22043)	10/17/1998 7:27:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Increased Leverage. The Company has significant indebtedness outstanding, principally $326 million gross proceeds of 10% Senior Discount Notes due 2008 (the "Senior Discount Notes"), capitalized lease obligations and other equipment financing. The Company may incur substantial additional indebtedness in the future. The level of the Company's indebtedness, among other things, could (i) make it difficult for the Company to make payments on the Senior Discount Notes, (ii) make it difficult for the Company to obtain any necessary financing in the future for working capital, capital expenditures, debt service requirements or other purposes, (iii) limit the Company's flexibility in planning for, or reacting to changes in, its business, and (iv) make it more vulnerable in the event of a downturn in its business. There can be no assurance that the Company will be able to improve its earnings before fixed charges or that the Company will be able to meet its debt service obligations, including its obligations under the Senior Discount Notes. In the event the Company's cash flow is inadequate to meet its obligations, the Company could face substantial liquidity problems. If the Company is unable to generate sufficient cash flow or otherwise obtain funds necessary to make required payments, or if the Company otherwise fails to comply with the various covenants in its indebtedness, it would be in default under the terms thereof, which would permit the holders of such indebtedness to accelerate the maturity of such indebtedness and could cause defaults under other indebtedness of the Company. Any such default could have a material adverse effect on the Company's business, prospects, financial condition and results of operations. Mrlucky, This paragraph was in the most recent S-3 flling with the SEC on October 15, 1998. This paragraph had never shown in any filing in this form prior. The debt was mentioned but not with this much detail and warning. I suspect that the distribution center built in New Jersey was costly and was paid for with cash. It may be leased. We do not know because Amazon.con keeps information secret as long as possible. It will be know when they file their next 10Q The one in the Seattle area is leased. Typically, leased facilities built to accommodate the client's needs, require a fair amount of cash upfront. Not as much if one built it themsleves outright but a lot of cash none the less. If you use your example of losses which produces cash burn, and then throw another $25 million dollars in for the New Jersey distribution center,I calculate the cash on hand for Amazon.con will be gone by Q1 of the year 2000. This is still not including the fact Amazon.con is adding inventory I assume using cash so as to be able to increase profit margins. A figure of $150 million there might be in the ball park. Cash may possibly be gone by Q3 of 1999. Glenn

To: MrLuckyman who wrote (22043)	10/17/1998 11:28:00 PM
From: Gary Walker	Read Replies (2) \| Respond to of 164684

There's no way they could sell these junk bonds in today's market. That's what makes their stock price so ridiculous. No credit but a stock multiple of 10x sales. How long will their cash position hold out at the projected losses? When will they have to go to market for more money? How will the market respond? What's wrong with this picture..... gw

To: MrLuckyman who wrote (22043)	10/18/1998 11:34:00 AM
From: Glenn D. Rudolph	Respond to of 164684

I believe this is worth a read: pathfinder.com

To: MrLuckyman who wrote (22043)	10/19/1998 10:37:00 AM
From: IceShark	Read Replies (3) \| Respond to of 164684

PS-- thank you Jan Crawley for clarifying the difference between true trading volume, as reflected in NYSE or Amex figures vs Nasdaq Market Maker "churn". Nasdaq uses trading volume figures as a selling point to get companies to list with them. The real selling point for companies that actually have a choice on which market to trade on is the fact that the DAQ MMs will hype and bring visibility to the stock thereby increasing demand and share price. Just ask anyone that has made the decision. Inflated trading volume doesn't hold the price up when real selling pressure come in. Companies that move over to the NYSE figure they are visible enough and can stand on their own two feet. Regards, IS