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Oh, I would very happily bet that within ten years AMZN will be bought out.
That was the kind of time frame I was considering.
Regards
DanG
James Taylor wrote:
> 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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