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

To: Jan Crawley who wrote (37585)	1/29/1999 1:05:00 AM
From: Yojimbo	Read Replies (3) \| Respond to of 164684

Jan - My "question" is -- Who is the prey now and who will be next? are the day traders and trading houses the sharks? Both longs/shorts are the targets at different times? imho, the $1.25b + 15% shoe are liquidity pumped straight into the institutions. this, by its very nature, is a long position. thus, the remaining float will: (a) likely be less influenced (at least in the s-t) by institutions, (b) see selling pressure from institutions hedging their notes, and (c) be equity that's ~ $1.5+b underwater in liquidation preference. plus, the size of the float is stable. so i would interpret all this as downward pressure. though, they will have $1.5+b in the bank to subsidize all their "loyal" customers! y

To: Jan Crawley who wrote (37585)	1/29/1999 1:19:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 164684

Jan, what do you think about the $1.2 billion debt offering that Amazon has locked up? On one hand I think it's just incredible that Bezos waas able to secure the $1.2 billion long-term debt at 4.75% interest and while pricing the options for $150+. That puts them in dept similar to the ratios seen by some of the Asian companies before the debt structure collapsed: Amazon has very few real assets outside of the cash they will have amassed and over $1.5 billion in debt. I guess the debt/equity isn't that bad considering most of it isn't spent. Some big money just gave Amazon an amazing vote of confidence - quite a war chest to do battle with. But, on the other hand, all this masive debt is senior to stockholders equity. If things don't go as well as planned these debts will be paid off before a shareholder sees a single cent. That increases the risk for shareholders at this early stage in the game. Maybe they can use the cash to successfully build the business. It will certainly make their negotiating power much more solid and their flexibility much greater. They can start playing the Amazon of the jungle much more agressively if that makes business sense. At the least it will earn some respect from large suppliers and potential business partners. Amazon never ceases to amaze.