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

To: GST who wrote (36164)	1/22/1999 11:59:00 PM
From: larry oertel	Read Replies (3) \| Respond to of 164684

What about AMZN Bonds? What the Street Thinks. From todays WSJ. "Even equity superstars like Amazon.com Inc., the Seattle online retailer, have seen their zero-coupon bonds tread water. Amazon.com's senior discount notes, sold last May at a price of 61.507 and a spread of 4.33 percentage points over Treasurys, were quoted this week at 65.5 offered but at a greater spread of 5.46 percentage points. The spread is the difference in the yield of a given debt instrument and that of a similar-term Treasury issue, with a widening of the spread suggesting an increased perception of risk. So even as Amazon.com's stock soared in the past eight months -- raising its market capitalization to around $17 billion from $2 billion at the time of the debt offering -- spreads on its junk bonds have increased more than one percentage point. "It shows the stock price is up for no material reason," said Merrill's Mr. Fridson. "From a bondholder's standpoint, they bought it, they hope it works out, but there's no real reason for them to have confidence Amazon.com will ultimately pay" its dividend just because the stock is trading over 100 a share, Mr. Fridson said. The stock was trading through midafternoon Friday at 121. In other words, assets and cash flow still count for junk bond investors." If AMZN has such a great future why are it's bonds lower than last spring? This piece of crap stock is just waiting for it's day of reckoning, as with most of the other Internut stocks. Any intelligent replies Longs?