sforce

Kindle DX: Has Amazon Misread the Student Market?

You do realize the screens on the Kindles are made of glass, so your question about durability and breakage are the more relevant. No way I can see on of these devices lasting four years.

As an aside, my memory of studying for finals always entailed have MULTIPLE books opened at the same time, and working feverishly between them---checking this against that, etc. I don't see how a single Kindle will work out.

Amazon's New Kindle-DX: $489 for an E-Reader?

The Plastics Logic device is going to shred this thing...

www.plasticlogic.com/
www.plasticlogic.com/P...
www.plasticlogic.com/p...

www.youtube.com/result...

The Big Kindle: Closing In on the Details

"ISuppli, a research firm, recently estimated the Kindle costs about $185 to produce, giving the $359 device a high profit margin."

04/23/2009 15:37 =DJ Amazon Says Kindle Costs Higher Than ISuppli Estimate

Amazon Says Kindle Costs Higher Than ISuppli EstimateLast update: 4/23/2009 6:37:07 PM

By Scott Morrison of DOW JONES NEWSWIRES SAN FRANCISCO (Dow Jones)--The cost to manufacture Amazon.com Inc.'s (AMZN) Kindle 2 electronic book reader is "significantly higher" than a recent market researcher suggests, the ecommerce giant's chief financial officer said Thursday. Tom Szkutak was commenting on a report by research group iSuppli Corp. that suggested materials and manufacturing expenses for the Kindle cost about $185.49, about 51% of the unit's retail price of $359. Szkutak made his comments in a call with reporters after the company reported strong first quarter results but provided slightly disappointing second quarter guidance. Szkutak declined to provide additional details about the cost of the device and the company once gain refused to reveal how many Kindle units it has sold. -By Scott Morrison, Dow Jones Newswires; 415-765-6118; scott.morrison@dowjone... (END) Dow Jones NewswiresApril 23, 2009 18:32 ET (22:32 GMT)

Amazon's Kindle: Hefty Gross Margins

"ISuppli, a research firm, recently estimated the Kindle costs about $185 to produce, giving the $359 device a high profit margin."

04/23/2009 15:37 =DJ Amazon Says Kindle Costs Higher Than ISuppli Estimate

Amazon Says Kindle Costs Higher Than ISuppli EstimateLast update: 4/23/2009 6:37:07 PM

By Scott Morrison of DOW JONES NEWSWIRES SAN FRANCISCO (Dow Jones)--The cost to manufacture Amazon.com Inc.'s (AMZN) Kindle 2 electronic book reader is "significantly higher" than a recent market researcher suggests, the ecommerce giant's chief financial officer said Thursday. Tom Szkutak was commenting on a report by research group iSuppli Corp. that suggested materials and manufacturing expenses for the Kindle cost about $185.49, about 51% of the unit's retail price of $359. Szkutak made his comments in a call with reporters after the company reported strong first quarter results but provided slightly disappointing second quarter guidance. Szkutak declined to provide additional details about the cost of the device and the company once gain refused to reveal how many Kindle units it has sold. -By Scott Morrison, Dow Jones Newswires; 415-765-6118; scott.morrison@dowjone... (END) Dow Jones NewswiresApril 23, 2009 18:32 ET (22:32 GMT)

Something Huge Is Happening with Amazon

Kindle, tomorrow's Newton, today...

Amazon: High Valuation Hints at Further Downside

Tim Boyd of American Technology Research said:

"Neutral means Neutral at current prices with a 12-month outlook. Amazon shares should trade lower in the near term, perhaps as low as $30 (15 times our new 2009 pro forma EPS estimate of $1.97), perhaps even lower (beta contingent). Investors who agree with that view should by all means short the stock here and now for short-term gains.

Our new $40 price target is a 12-month target, i.e., we assume that 12 months from now, the market will have sufficient visibility into the state of the economy and the consumer to assign Amazon shares a 20 times multiple. Amazon is a unique and extremely well-managed franchise that is likely to emerge from the current economic malaise much stronger than when it went in. It is the kind of stock that investors will want to own for the long term at the right price.

We would start nibbling and/or covering shorts at $30. With Apple (AAPL), Research in Motion (RIMM) and Google (GOOG) already trading at an average calendar 2009 price/earnings multiple of about 15 times, there is no reason Amazon shouldn't trade there, too, after Wednesday's report."

-- Tim Boyd

online.barrons.com/art...

Amazon: Respectable, But Guidance Hurts

Not cheap at all. Look at the new earnings estimates, and do the math:

finance.yahoo.com/q/ae...

Amazon: Transitioning Into a Technology and 'Cloud Services' Company

"The headlines read “Amazon Earnings Double” "

Oops, is right: AMZN's "real" Q2 EPS:

Excluding the $53 million non-cash gain (as one should), I get 26.3 cents.

Applying the expected 30% tax rate, I get 25.6 cents.

Removing the foreign exchange effect, and it comes down to 23.6 cents.

That is compared to 19 cents for the same quarter 2007. An increase of 23.7%

That's pretty good, sure, but not nearly as impressive as what was reported by both the company and the press. AND, impossible to justify either yesterday's stock price rise, nor the current valuation.

As to DVD transaction itself, that is a curious bird, to be sure, and not exactly as it appears. More of a merger or a transfer than an outright sale (yet they took a $53 million gain, on the sale of a company with a mere $17.5 in annual sales--curious).

The $53 million one-time non-cash gain that allowed Amazon to "beat the number" is from Amazon's selling its DVD business to LOVEFiLM, yet, it looks like Amazon was actually "out of pocket" for the transaction.

www.reuters.com/articl...

Wall Street Breakfast: Must-Know News

www.ft.com/cms/s/0/8e0...

www.bloomberg.com/apps...

5 Key Quotes from Amazon on the E-Commerce Industry

In the earnings press release from Amazon.com today, Amazon included a $53 million one-time non-cash gain as "operating earnings" for their reported FY08 Q3, thus increasing their reported earnings per share for the reported quarter. Although I am not an accountant, this does not seem legitimate.

Making this seem even more suspect (to me), is the fact that when asked by analyst Scott Devitt of Stifel Nicolaus during the subsequent conference call, Amazon stated that they are excluding said $53 million one-time non-cash charge in their full-year "operating-earnings" guidance. Is this acceptable?

Can they use a one-time non-cash gain as operating earnings one place, but not another?

Can they use a one-time non-cash gain as operating earnings--at all ??

Sounds like Amazon, in effect, pulled a rabbit out of a hat to "make" their quarter, and please the Wall Street community. I can't imaging this is an acceptable, forthright nor an honest accounting practice. It may be even sneaky.

"Operator"

Your next question comes from the line of Scott Devitt – Stifel Nicolaus

Scott Devitt – Stifel Nicolaus

As it relates to the guidance and the change for the guidance last quarter you gave full year GAAP operating income guidance $740 to $940 and the GAAP operating income this quarter was I believe $57 million above expectations including the $53 million gain so I’m trying to get my hands around the updated guidance which is mostly unchanged from the prior GAAP operating income guidance and whether this new guidance includes or excludes the $53 million gain.

Thomas Szkutak

Yes, the GAAP, the guidance excludes the $53 million gain."