when they have to reissue new debt! Are we getting the picutre now? EVERYTHING IS GREAT FOR AMZN WHEN IT IS ON THE THRONE AS THE MOST LOVED AND SUPPORTED STOCK IN THE MARKET. Retring debt a few years ago was very bullish, and so is the reissuing of debt bullish. That's the message when you have a stock like AMZN that is uiiversally loved and supported again and again! It's really that simple.
The free bond money was great for shareholders as it got the company past a near term liquidity crisis. After paying for the HQ real estate, AMZN should have about $1B in working capital. Remember, at 9/30/12, the company had $0 working capital. The 9/30/12 cash existed only because the company had not paid employees or vendors. Hard to believe the investment grade rating when the agency analysts base the rating on future market share gains, future product launches and future profitability. Moody's stated it would look to downgrade AMZN if the debt/EBITDA ratio exceeded 3.25x. If you factor in the operating lease obligations at 9/30 and add the new bond debt, the company is already leveraged well above 3x. And this assuming a $3B EBITDAR number for 2012.(net debt+op lease obligation)/(EBITDA+rent expense)
Looks like you still get what you pay for from the rating agencies. Nothing has changed at the agencies,
Sentiment: Strong Sell
A temporary panacia thats already priced into a rediculous stock price, the only 'shareholderz' that the bond offering will be good for temporarily iz bezos and hiz palz so they can 'buy back' their free sharez at theze rediculous levelz while baggies 'buy the newz'. Fvck Beyond Trading, cramer, cnbc, and bloomberg pumps... Listen to sybil and save your ars and/or profit from the scam by selling it short.
I subscribe to Beyond Trading. You dont know what you are talking about. They see Amazon as very expensive not good value, it's a game nothing else which they teach how to play. Personally I consider AMZN a strong sell