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riverdave

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  • Earnings Are Not Amazon.com's Only Problem [View article]
    Yeah, quick question on this cash flow thing.

    As far as I have seen there has been a great surplus of cash for many years, that the company has finally put this cash to work in other areas [including acquisitions] bothers me very little; what good is cash if it is not out there working for you?

    P/E ratios are certainly a factor to look at in any investment; it remains that this company has always functioned on a small P/E and instead gone for the volume. Good strategy? Well it seems to have worked.

    Do I think this is over priced? Well yes, at this point in time. But do not buy any put options until just before the Q4 reports.

    For now I would go long. "Make hay while the sun shines." :-)

    Best regards, David
    Sep 26, 2012. 10:20 PM | Likes Like |Link to Comment
  • Amazon: The Future Growth Implied By Its Price To Sales Ratio [View article]
    Great point,
    This is one of the things that came into my head when I read this. With a few variations however. First, I think it is $89./yr but I will check my account records. Second, I feel that it is 'used' by most subscribers [both shipping and streaming] little enough to make it a profit center. Just sayin' ... Still, I would not place all of my chips on this bet without more information.

    You could buy put contracts of course, but then we are heading for Q4 reports that will reflect the 'peak' season for AMZN. How long the contracts and what is the strike $ ?

    For the record, I hold 2,000 + shares of the stock and some calls. That does not mean that I will not enter into put contracts come late January. I will still hold the stock because my wife and I own them at a very good price base.

    Best of luck to you all, and remember... DO YOUR HOMEWORK AND STUDY THE CHARTS! Other peoples opinions are of value, but in the end it is you that will take the hit or reap the reward.

    Best Regards, David
    Sep 26, 2012. 12:56 AM | 1 Like Like |Link to Comment
  • The New Kindle Fire Won't Change Our View Of Amazon [View article]
    In fairness I should note that both my wife and I have many years in at AMZN and I hold a tier III position which while it gives me a little more insight, it does not put me in a position in which I could do an 'insider trading' thing, even if I were so inclined, which I am not.

    We do hold positions in AMZN beyond the vested stock from the company.We also hold some put contracts. I also hold a degree in economics and accounting, that plus the 'homework' on this investment as we would on any other.

    I do not always place a heavy value on P/E but it should always be considered. I like the charts and [in this case] rely ,somewhat, on my knowledge of the operating philosophy of this company.

    It does seem to be a little overvalued at this time but we will hold the stock and watch for the Q4 report. That will likely be a boost as the #'s will reflect the 'peak' season at which point we plan to sell a portion of the position for the profit and hold the rest for the long term. Then hope that I chose correctly on the puts.

    Please know that this is only my opinion and that I would hope that you do your own homework on ANY investment. It's not like Jeff Bezos and I get together when he is in town and have a beer.

    Good investing to you all, David
    Sep 10, 2012. 03:31 AM | Likes Like |Link to Comment
  • Amazon And Printing Books On Demand [View article]
    Hello, my name is David. I am a Barry Goldwater conservative, 62 years of age and very knowledgeable of AMZN and it's processes.
    I began my employment with Amazon.com in 2006. [I in no way speak for the company, this comment is only a FYI thing.]

    The article is well written and informative but it should be noted that there are three fulfillment centers that have this capacity, the 'print-on-demand' feature which at Amazon is called Make-on-Demand or just MOD. Make as opposed to Print because we also produce DVD's and CD's of titles out of print or not in demand in sufficient quantity to justify placing in inventory.

    One MOD unit [the largest] is located in Lexington, KY/USA, one in South Carolina [US] and one in Germany. The daily out-put at Lex 1 is on average 14 to 20 k units per day. This number is expected to grow as an investment has been made recently to expand the capacity of the Lex 1 unit.

    I hope this is helpful, David


    May 29, 2012. 08:59 AM | 1 Like Like |Link to Comment
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