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To: puborectalis who wrote (219)	3/27/1999 9:17:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 419

Steven, I think you are missing the point. Companies like AMZN have no profitability engine, and all of the increase in sales in the world won't provide them with one. Look at AMZN's 10-K closely, and you will find that they are actually in negative operating cash flow in addition to negative profitability. A significant portion of marketing and sales and product development costs are variable. I have guestimated these at 85% and 50% respectively. That means they must either cut costs or raise prices. TTFN, CTC