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.

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

To: Wayners who wrote (57879)	5/22/1999 11:22:00 AM
From: John Donahoe	Read Replies (1) \| Respond to of 164684

Snippet from your link: Over the coming years, Amazon will likely amass a sizeable portfolio of marketable securities which can be periodically sold to generate cash. In effect, Amazon is turning into not only the Web's dominant e-tailer, but also a powerful quasi-Internet venture firm. Does this imply that they will have the ability to "burn cash" a lot longer then Glenn assumes?

To: Wayners who wrote (57879)	5/22/1999 8:14:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Price: $16 1/2 12 Month Price Objective: $19 Estimates (Jan) 1998A 1999E 2000E EPS: $1.12 $1.20 $1.43 P/E: 14.7x 13.8x 11.5x EPS Change (YoY): 7.1% 19.1% Consensus EPS: $1.18 $1.40 (First Call: 13-May-1999) Q1 EPS (Apr): $0.01 d$0.01 Cash Flow/Share: $1.91 $2.13 $2.38 Price/Cash Flow: 8.6x 7.7x 6.9x Dividend Rate: Nil Nil Nil Dividend Yield: Nil Nil Nil Opinion & Financial Data Investment Opinion: B-2-2-9 Mkt. Value / Shares Outstanding (mn): $1,333.2 / 83 Book Value/Share (Jul-1998): $7.72 Price/Book Ratio: 2.1x ROE 1999E Average: 13.9% LT Liability % of Capital: 0.5% Est. 5 Year EPS Growth: 20.0% Stock Data 52-Week Range: $41 3/4-$13 1/8 Symbol / Exchange: BGP / NYSE Options: AMEX Institutional Ownership-Spectrum: 57.6% Brokers Covering (First Call): 11 ML Industry Weightings & Ratings** Strategy; Weighting Rel. to Mkt.: Income: Underweight (07-Mar-1995) Growth: Overweight (07-Mar-1995) Income & Growth: Overweight (07-Mar-1995) Capital Appreciation: Overweight (05-Oct-1995) Market Analysis; Technical Rating: Below Average (27-Apr-1999) Intermediate term opinion last changed on 21-Apr-1999. The views expressed are those of the macro department and do not necessarily coincide with those of the Fundamental analyst. For full investment opinion definitions, see footnotes. Investment Highlights: On 1Q earnings conference call, Chairman indicated a change toward being “open-minded” about spinning-off Borders.com * In the past, Borders had opposed spinning-off the internet business * BGP's on-line business receives a negative valuation due to operating losses while public internet companies receive huge valuations * We call this phenomenon the “Valuation Paradox” * On the negative side, spin-off might result in higher marketing costs and reduced EPS Fundamental Highlights: * Our current price objective is $19, reflecting a 13 times multiple of 2000 EPS compared with the current multiple of 14 times 1999 EPS Bulletin United States Retailing - Other Specialty 21 May 1999 Daniel D. Barry First Vice President Glenn M. Salzman Industry Analyst Borders Group Inc. "Valuation Paradox" May Force Borders To Spin-off Part Of Internet Subsidiary ACCUMULATE* Long Term ACCUMULATE Reason for Report: Analysis Of Borders Valuation Paradox Merrill Lynch & Co. Global Securities Research & Economics Group Global Fundamental Equity Research Department RC#10114166 Stock Performance 8 12 16 20 24 28 32 36 40 0.010 0.012 0.014 0.016 0.018 0.020 0.022 0.024 0.026 0.028 0.030 0.032 0.034 0.036 1996 1997 1998 1999 Borders Group Inc. Rel to S&P Composite Index (500) (Right Scale)