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

To: 16yearcycle who wrote (44000)	3/4/1999 10:03:00 PM
From: Jan Crawley	Respond to of 164684

Bezo's is planning this. I think he is going to try to do what he says is planning. He says he wants to sell staples. I am sure that he is and I am sure that Amazon will sell lots of other things. For his determination and manipulation, I hope that Amzn the stocks will have many round trips for many years, so some of us can benefit.

To: 16yearcycle who wrote (44000)	3/4/1999 10:44:00 PM
From: Glenn D. Rudolph	Respond to of 164684

He says he wants to sell staples. By the way, I was an assistant manager of a Walgreens drug store in 1978. Paper products were the highest margin items even then.Cleaning supplies are high, too. Canned goods were sold at a loss. Eugene, We still have the problem of delivery to each house. That entails not only shipping charges, but labor to box, seal, label, pull item from shelves, etc. There is also the cost of the shipping box. All of this is really fulfillment costs and I doubt the average consumer will pay extra to have it delivered to their house. I doubt Bezos is planning anything. He has discovered the original plan failed so now he is winging it just to keep revenues increasing. If he can do that, then Morgan Stanley will find him more money. There is no business model here. None of the original plans are in place. The no inventory concept is gone. The lack of need for wharehouses and distribution centers is gone. The cash upfront from the customer "advantage" is eaten up by the 2% Amazon pays the credit card processing company. Every sale is reduced by 2% right off the top. Two percent per month is 24% per year on that "advantaged" money that the analysts tout. Amazon must carry inventory, they must charge more than their brick and mortar competition to turn a profit. It is that simple. Interestingly enough, Amazon is becomming more brick and mortar all the time with all their distribution centers. If Bezos did not have the backing of Morgan Stanley, this firm would have been bankrupt last summer. It is just going to take a little longer now. I often laugh when the bulls on this thread talk about Amazon's "war chest of cash." That phrase originated when there were wars and looting was common. The valuables with which to buy arms was stolen. It was also a common phrase when pirating was in vogue. Amazon will only be able to loot so much before the equity markets stops throwing cash at them. The current cash on hand will only last until 2003 at best according to my calculations. Glenn