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To: Dayuhan who wrote (302)	4/7/1999 12:28:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 419

Steven, I think the Fool's analysis is correct to a point, but comes to exactly the wrong conclusion. The point both the Fool and I agree on is that AMZN's business model allows it to rapidly generate cash while showing negative earnings because it uses cash from suppliers and customers to fund its growth. If I am correct (and I am virtually certain of this), AMZN must either grow or die. It cannot remain static. Edwarda pointed out that AMZNs CFO is scrambling to find more sources of revenue, which supports my contention. The Fool takes a somewhat different tack. It suggests that because of the cash generating power of the business model AMZN could afford to lower prices and pressure competitors even more. Also probably true. BUT, what happens when growth slows or stops even for just a quarter or two? The whole structure will collapse because AMZN will need to repay it payables with an ever shrinking source of cash. That's why I think it is a rehashed Ponzi scheme. TTFN, CTC