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Bernard Garos

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4/10/12
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05/23/12
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Stock Pick by Bernard Garos

AMZN: Amazon free fall

Start trading AMZN with real money!

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Posted 1906 days ago on 5/07/12

AMZN will go DOWN
$128.00 on 5/07/12
$1,049.85 (371.48% from time of market call)

At the moment amazon is an overbought stock. With a lot of people on margin on amazon, a few hard blows will lead to a big sell off. This also taken into consideration that the PE ratio is well above 150 and the ROA an individual gets on his bank account is bigger than the value Amazon creates. Also with negative earnings growth forecasts and a book value per share of 16, once investors sell part of this castle built upon air, others will follow suit, and a massive scramble of people selling the stock will take place.

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Comments

Posted 11/19/2012, 7:06 pm

@ Christina I think that they're not suited for search as they're more based around the Kindle at the moment. I think that the stock will under perform and see moderate declines since it won't quite meet expectations. I don't think that it'll plummet since there are many growth opportunities for the company.

Posted 5/7/2012, 1:22 pm

What about their search technology? Dont you think they are becoming a new player in the search market?

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