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

To: llamaphlegm who wrote (28823)	12/3/1998 8:17:00 PM
From: Glenn D. Rudolph	Respond to of 164684

You might have picked up your computer at your favorite warehouse club at a severe discount, but don't try to tell that to people who want to sell Amazon.com short based on its low gross margin and the impossibility of the company to avoid the inevitable pricing pressures that will ruin all Internet retailers. According to such people, you can't make money on gross margins of 22%, and forget about it if you try to make money on gross margins of 12%. All of this ignores the very real fact that there are companies that make tons of money on gross margins of 20%, 15%, and under 12%. And these companies are very much cash flow positive, too. If you're having a tough time with that one, check out Costco's (Nasdaq:COST - news) numbers and the way it moves its inventory. Look a its cash conversion cycle (days in inventory plus days in receivables minus days in payables) and then compare that with all sorts of other companies. While you're looking at companies with gross margins under 12%, take a look at B.J.'s Wholesale (NYSE:BJ - news) . Dale just does not get it. I know he will not read this but the customer does fulfillment at Costcos and BJ Wholesales. AMZN needs to automate fulfillment and/or charge for acces to their site. Glenn