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To: Boplicity who wrote (90703)1/22/1999 12:24:00 AM
From: Chuzzlewit  Read Replies (1) | Respond to of 176387
 
Greg, I just hope you are avoiding stocks like AMZN. The paradigm is not new. Just the song and dance are new to get you to pay no attention to the old rules. Watch the free cash flow! If there is no free cash flow and there is no plan for generating it stand clear!

The only cash supporting AMZN is the sale of its stock, and the use of its stock as collateral on loans. Cash flow from operations is inadequate to cover its needs. As the stock price dives, it will be forced to sell more and more stock. I don't know when this stock will come down to earth -- it depends on what the lemmings do. I've been warning Voltaire for weeks, but his angels keep telling him something else.

TTFN,
CTC