Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Barnes & Noble (BKS) -- Ignore unavailable to you. Want to Upgrade?

To: r g potgieser who wrote (632)	4/10/1999 10:57:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 1691

r g, I'm a bit troubled by all of the hoopla. So far the e-tailers have shown that they can generate tremendous cash flow because of timing differences. But they have yet to demonstrate anything resembling profitability. Furthermore, statistical analysis of AMZN reveals that all of its costs act as if they are variable. That means precious little in the way of economies of scale. Now both Bertelsman and Barnes and Noble have captive publishing houses and wholesalers (like Ingram). I believe that that is where the real money will be made. The danger to BNBN and to AMZN is they will not be able to maintain positive cash flow with low growth -- and sooner or later they will hit the wall. What then? TTFN, CTC