<COMMUNITY>
Post of the Day
August 6, 1999

From our
Rule Breaker Port Folder

Posts selected for this feature rarely stand alone. They are usually a part of an ongoing thread, and are out of context when presented here. The material should be read in that light.


Subject:

Re: Is AMZN still a rule breaker?

Author: Nooz

stefgal:

I'm about the biggest Amazon bull this side of the Mississippi, but two caveats:

1) Don't get involved with the Rulebreakers until you've had a little experience with the Foolish Four or the Rulemaker stocks, or some more traditional companies. Understand that your shares could drop immediately after you buy them and stay that way for weeks, months. It's even possible that the bears are right and we'll need a year or more in the tank before the Internets are attractive again (I don't think so, but I'm psychologically prepared to be wrong.)

2) I wouldn't start with Amazon. It's probably the most hated and controversial of all the stocks in the RB port. There are a lot of folks who will do what they can to undermine your confidence in it at critical moments. AOL, on the other hand, has profits and is at what I consider an attractive price; I'd certainly buy it before I ever bought more Amazon. Some would argue that ATHM is the hotter stock, with the newer technology, and has more upside than either AMZN or AOL. Others would say, stay away from tech/Internet stuff altogether; that leaves you with SBUX or AMGN, two strong companies. AMGN in particular has been rising while everything else has been sinking. I personally wouldn't touch anything else in the RB port.

3) Most important, don't act on advice from me or anyone else here. Only you really know your situation: your tolerance for risk, your experience, your cash availability, your understanding of these companies. This is NOT standard boilerplate; it's a real warning. A lot of people on these boards are blowhards with hidden agendas. For all you know, I'm the same. Trust yourself, and if it blows up in your face, blame yourself. Leave us out of it.