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

To: SLN who wrote (37344)	1/28/1999 10:24:00 AM
From: IceShark	Respond to of 164684

Yes, I think that is the genesis of the extraordinary "stay away small investor" comment. He has effectively cut the legs out from any class action lawsuits should the stock tank. And heavy insider sales prior to a fall always look bad irrespective of the motivation. Not that AMZN will necessarily fall, but as we all know, this thing can move like crazy, so you may as well protect yourself.

To: SLN who wrote (37344)	1/28/1999 10:26:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 164684

Let's look at the positive side of this transaction: Amazon will now have about a year's sales in high-interest convertible debt (aprox. 10%). This means that profits will go to pay off the debt for years to come. That's a great thing for investors because it delays the day when there will be real profits to the bottom line. That's good because with no real profits there will be hardly any traditional ways for the company to be judged against other investments. And because it is debt that can be paid off in the future, the company can hide the effects for years. Then there is the prestige of owing $850 million (total). How many young companies can stake that claim? Neither Microsoft or Dell had nearly that much debt when they were only a few years old. Heck, if Microsoft with little debt was worth hundreds of millions four years into it's existence, then Amazon should be worth more than the value of all of Europe due to their more aggressive leveraging. I think all this debt is good. It makes perfect sense to secure the debt while the company is valued at only a few tens of billions - before investors see the stock value rise into the trillions. ! ; ^)

To: SLN who wrote (37344)	1/28/1999 12:48:00 PM
From: GST	Read Replies (2) \| Respond to of 164684

SLN -- <Tomorrow will be very telling. It will be the first opportunity insiders have to unload shares since 48 hours will have passed from the earnings report.> When the stock gaps down at the open more often then it gaps up, traders won't want to take it home. Look at this morning's open. Not a gap down, but a quick sharp drop. What will surpirse the AMZN bulls is how quickly AMZN will slice through 100 and how little it will bounce once it is branded as a sick puppy.