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

To: Tradegod who wrote (25547)	11/11/1998 12:16:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 164684

The 'coined term of the Week award' goes to Tradegod for his post: " . . . the price to reality ratio". I like that - maybe we can get some analysts to start listing it in their analysis on the Internet stocks! I have long ago figured that Amazon.com was lifted off of the earth by some mysterious force and deposited onto Bizarro Internet World - a place where proving even the most blissful projection is not needed to justify the company's stock price and companies are paid up front for the dreams they can develop. The ignorance of the public makes pumping these stocks up to ungodly levels like taking candy from babies. The trouble is that THERE IS a lot of excitement surrounding the Internet and everyone who gets "into it" feels that. But that raw excitement compounded by the sensational growth in the number of users is like adding fuel to a forest fire. --------- I agree mostly with your analysis of the Walmart suit. I understand that there were also some recent buyers and logistical managers who were pulled away. A lot of what is useful is to get at the supply cost information that Walmart was able to bludgeon out of suppliers. Here's what you do: put electronic data interface (EDI) systems and agreements with suppliers so that when you sell something the supplier automatically ships it to where it is needed - either one of your distribution centers or directly to the customer. The vendor makes only what is needed and little money is wasted on finished goods inventories that don't sell immediately. These systems can use equations to take into account the rate of orders rather than just set order levels. So if something starts to move quickly, the supplier knows to speed up the rate of shipment a bit ahead of the actual need. This closeness between supplier and delivery to the consumer results in happy customers and lower costs. It's inevitable for commodity e-tail sales. But guess what? Barnes & Noble and others are very tuned into this and are taking actions to cut Amazon's plans off at the pass before they can get the facilities and relationships in place. And Costco, Walmart and any other large retailer out there with half their skulls filled up with gray matter will be plotting a course of action very quickly. It's not going to be a one horse race by any means. Wouldn't it be something if several firms sued Amazon? Several established firms may come to see AMZN's business plan as something akin to a plan of putting their businesses six feet under the ground.