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

To: IceShark who wrote (37507)	1/28/1999 7:41:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Glenn, What Yo is saying is that the bond requires a cash interest payment, not PaymentInKind (PIK), i.e. new paper, or in other words a zero coupon. So these zero coupon bonds must be paid at maturity too? This is really quite extraordinary. I liken it to a preferred issue with a common stock appreciation kicker. So, the cash interest will go out, every quarter or whatever the payment dates are. I am struck by the low interest rate of 4.75 (which it looks like the fix will be at) and the demand for the issue (150% above original sizing this morning). Jeez, I wish I could syndicate my life for these rates! But then I think I would have to sign my soul over to the devil for eternity. -g- I dislike this company for a variety of reasons. I am assuming the buyers of these bonds anticipate Amazon to some day be profitable. Is the assumption that Amazon can raise so much inexpensive money from the equity markets as to continue to sell at a loss until every profitable concern throws in the towel? Then they raise prices to raise margins? I am lost and just trying to understand. Glenn

To: IceShark who wrote (37507)	1/28/1999 11:50:00 PM
From: Yojimbo	Respond to of 164684

Ice - Glenn, What Yo is saying is that the bond requires a cash interest payment, not PaymentInKind (PIK), i.e. new paper, or in other words a zero coupon. This is really quite extraordinary. I liken it to a preferred issue with a common stock appreciation kicker. So, the cash interest will go out, every quarter or whatever the payment dates are. I am struck by the low interest rate of 4.75 (which it looks like the fix will be at) and the demand for the issue (150% above original sizing this morning). Jeez, I wish I could syndicate my life for these rates! But then I think I would have to sign my soul over to the devil for eternity. thx for explaining while i was @ dinner! hey ice, what's your beta? if it's anywhere near scamazon's i'll take 5%! y