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


To: Peter J Hudson who wrote (31691)12/30/1998 12:04:00 AM
From: Bill Harmond  Read Replies (2) | Respond to of 164684
 
Having store leases is bad because leases are liabilities just like debt.



To: Peter J Hudson who wrote (31691)12/30/1998 12:39:00 AM
From: Gary Walker  Read Replies (1) | Respond to of 164684
 
>calculations are only meaningful if there are tangible assets and equity.

I'm no cpa, but your statement is not accurate. There are tons of companies with patents and licensing agreements that are better income producers than hard assets.

In fact, the most successful businesses create wealth without making investments in tangible assets. How much value in MSFT is related to tangible assets? Not much as a percent of the market cap.

In any case, if the assets don't create income, all is a mute point.

The DLJ article as a AMZN market cap justifier was full of holes, but the accounting side is A1.



To: Peter J Hudson who wrote (31691)12/30/1998 2:11:00 AM
From: Dwight E. Karlsen  Respond to of 164684
 
Peter: Here are AMZN's current ROA and ROE (both suck):

According to Yahoo Finance:
AMZN
Management Effectiveness

Return on Assets (ttm) -30.89%
Return on Equity (ttm) -143.36%

You don't need a CPA to tell you that those numbers suck. End of story.