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I wouldn't bet on that (buying out AMZN).
With AMZN's debt levels, it will have to go into bankruptcy and default on
those loans
before anyone would consider buying it.
Love being short AMZN,
JT
----- Original Message -----
From: "Daniel Goncharoff" <TheGonch@xxxxxxxxxx>
Cc: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, June 23, 2000 9:00 AM
Subject: [RT] Re: R: Re: STK: AMZN
> The simple answer is that they are losing money on an operating basis,
> and if they never make money, they will simply run out of cash
> eventually.
>
> It is actually more complicated than that. The company claims that the
> book business does make money on an operating basis, but their
> financials do not allow anyone to confirm that, because advertising for
> the book business v other business lines is not broken out, and there is
> a lot of discretion possible in allocating advertising between current
> high-volume businesses and new business. Some analysts believe that a
> 'normal' allocation methodology would result in the book business losing
> money even today. If that is true, the conclusion would have to be that
> the business has failed, eg, that with advertising costs included, AMZN
> has not figured out how to sell books at a profit over the internet.
> Since there are profitable book sellers, presumably one of them will be
> around to buy AMZN out eventually.
>
> Regards
> DanG
>
>
>
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