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


To: Don Westermeyer who wrote (58491)5/25/1999 5:50:00 PM
From: sea_biscuit  Read Replies (2) | Respond to of 164684
 
I for one, won't be surprised at all to see this one in the low single digits...



To: Don Westermeyer who wrote (58491)5/25/1999 10:29:00 PM
From: MSI  Read Replies (1) | Respond to of 164684
 
I know. There's enough of a possibility for breakeven with some exotic maneuvering that it's worth mentioning.

FWIW, if there is still $1b or more in cash, and it's invested in high risk 10% bonds somewhere, and fulfillment costs are normalized somehow, and the associate fees are dropped, and inertia keeps sales going, and they really want to keep the co. afloat, and ...

Right, it's not easy. But at a $120m current loss rate, it's conceivable to gen $100m / year in interest, save a few bucks on fulfillment, go to guerrilla advertising, and avoid a bk. Granted you won't have the growth rate, and your stock won't be worth much for a while, but take your time during the debacle, let carnage around you subside, and arise from the ashes with market share and some future value. Plus you have the rabbit-in-a-hat quality of internet cross-commercialization possibilities with desperate entities willing to combine at any cost.

If you are determined to do so, that is, and aren't already retired in the bahamas, or in a $12m mansion in Seattle laughing your arse off. If I were on the board, I'd tell Bezos to cut to breakeven mode, take a 6-week vacation, and come back with some real direction. He's a genius, but needs some perspective with the new CFO. The amazing thing w. an internet co. you can do things like that.

The uncertainty of the two polar extremes is what keeps me out of the stock at times like this.