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

To: Sarmad Y. Hermiz who wrote (40430)	2/16/1999 6:16:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

As long as they don't spend the money, the interest they earn will cover the coupon. But if they spend it on facilities or inventory or developing book_shelf_access_robots and cannot generate positive cash flow, then they would probably have to float more stock, because no one will lend them more, then it is down hill. Sarmad, Most people now seem to be ignoring the $500 million in junk bond debt from the off shore offering last May. Their debt is incredible when one really looks at it. These facilities are being leased but the equipment needed for them to run must be bought by Amazon. The terms of the lease for the Navada facility were not disclosed as thought that is a big secret. I believe that will have to be file in their 10K but I could be incorrect. It is my opinion that Amazon is in the most precarious postion of all the internet "leaders." I honestly do not see a way out for them. The coupon rate on the $1.2 billion is low. However, Morgan Stanley received almost $.2 billion of the cash. Then the new facilities will require a lot of cash so there will not be a great amount ot invest to offset the payment of the coupon. Glenn