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Technology Stocks : OnSale Inc. -- Ignore unavailable to you. Want to Upgrade?

To: PAL who wrote (2966)	12/30/1998 1:23:00 PM
From: j_b	Read Replies (1) \| Respond to of 4903

<< The name of the game is maximizing shareholders value, and it is not always the same. Look at AMZN, they are doing a good job at it. >> Short-term you are correct. Long-term I disagree. Over the long term, if you maximize profits, you also maximize stockholder value. After all, the street has always rewarded consistent predictable growth by giving higher multiples. The only exception has been the internet stocks, and that is strictly a short-term phenomenon. As to AMZN, they have done very little (IMHO). The market has given them a valuation far in excess of anything sane. Long-term, that will not last. If there is not sufficient profit to justify the price, the shares will drop like a rock. Working on brand recognition and customer retention are methods of maximizing long-term profit, but other than bogus press releases, there really isn't anything a company can do to maximize value OTHER than maximize long-term profit.