Amazon and Profit – Anachronisms?
from the trouble-in-amazon-town dept
Deb writes “I don’t recall your coverage of this item, but Mr. Suria, the same analyst who sank Amazon last year, is at it again. Suria contends that Amazon will be short of “working capital” by third Q ’01. Over $40 million short. Over $30 million short for Q4. The NY Times offers point to every Amazon (bogus) counterpoint; for example they point out that although some companies (Wal-Mart and Costco) do have negative working capital, they also have access to capital should they need it (through lines of credit with their banks). Amazon’s credit rating is very low, and would have to pay a premium if it could convince someone to lend them money (and that looks doubtful). I’ve wondered for a few years when investors were going to wake up and smell the burning books.”