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{5U} » Comments » AMZN

  • Was Amazon Behind iTune's Price Drop? [View article]
    Tis just another sign of Apple losing its dominance.

    As the iPhone heads to Walmart, it will slowly become the new RAZR
    Jan 06 22:10 pm |Rating: +1 -1 |Link to Comment
  • Amazon Shares Could Appreciate by 20% [View article]
    This Seeking Alpha website seems like it is fed by portfolio managers using pundits to bull their positions.

    I agree with the comment that 12x EBITDA is very rich.

    We are in an era on declining consumer credit even if the government throws everything and the kitchen sink to the credit crisis. Going forward we are in a less levered world. Also, rising unemployment leads to less credit availability and usage.

    And how can a WACC of 10% make sense when triple B bonds are trading at 8%? A 2% premium over the debt is a bit far fetched.

    Try a 13% discount rate and see where your valuation is. Models are garbage in garbage out.
    Dec 20 10:22 am |Rating: +4 -1 |Link to Comment
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