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	<title>Comments on: Amazon&#8217;s Wholesale Slaughter</title>
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	<description>From the ancient Greek for equality in freedom of speech; an eclectic mix of thoughts, large and small</description>
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		<title>By: AAB</title>
		<link>https://www.isegoria.net/2014/05/amazons-wholesale-slaughter/comment-page-1/#comment-1249105</link>
		<dc:creator>AAB</dc:creator>
		<pubDate>Sat, 17 May 2014 14:41:45 +0000</pubDate>
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		<description><![CDATA[&lt;blockquote&gt;Take a loss for long enough to kill all their competition then raise prices?&lt;/blockquote&gt;

That sounds like it has a similar effect to &#039;&lt;a href=&quot;http://en.wikipedia.org/wiki/Dumping_(pricing_policy)&quot;&gt;dumping&lt;/a&gt;&#039; (i.e. a company that sells its goods cheaper than it costs to manufacture them and then saturation-dumps them on the market in order to force its competitors out of business).]]></description>
		<content:encoded><![CDATA[<blockquote><p>Take a loss for long enough to kill all their competition then raise prices?</p></blockquote>
<p>That sounds like it has a similar effect to &#8216;<a href="http://en.wikipedia.org/wiki/Dumping_(pricing_policy)">dumping</a>&#8216; (i.e. a company that sells its goods cheaper than it costs to manufacture them and then saturation-dumps them on the market in order to force its competitors out of business).</p>
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		<title>By: Slovenian Guest</title>
		<link>https://www.isegoria.net/2014/05/amazons-wholesale-slaughter/comment-page-1/#comment-1247813</link>
		<dc:creator>Slovenian Guest</dc:creator>
		<pubDate>Fri, 16 May 2014 17:59:47 +0000</pubDate>
		<guid isPermaLink="false">http://www.isegoria.net/?p=35093#comment-1247813</guid>
		<description><![CDATA[Karl Denninger from The Market ticker argues that it&#039;s all hype:

&quot;This is a company that has ridden the Internet Bubble 2.0 game to an extreme degree, becoming both a household name and immune to the ordinary sort of analytical process that leads to the conclusion that you&#039;re simply spinning your wheels and floating on your stock price instead of your improving performance.&quot;

&quot;It had deteriorating ratios for more than a year and now it&#039;s so-called investment is in fact only about 50% effective in doing anything; the rest goes into the ether.  Worse, the portion of that so-called &quot;investment&quot; in the business that is effective has failed to improve margins (that is, operating efficiency at the end of the day) or arrest the slide in sales growth.

While this might be a sustainable model if you have a 20% after-tax operating margin when your net operating margin is in fact under 1% this is a recipe for disaster, with the only hope of it not materializing being found in the pump monkey job that comes from so-called financial media.&quot;

&quot;Essentially 10% of Amazon&#039;s business disappears where they have to collect sales tax, and large purchases are close to three times as negatively-impacted as smaller items!

Now who has been talking about this is going to be massively material to them as it rolls out nationally?  Uh, yep.&quot;

&quot;At today&#039;s price, Amazon has a negative Price-Earnings ratio on current earnings - or forward projections out 12 months.

What happens when those who are margined up to their necks in these - and you know damn well a lot of people are - start hearing the phone ring?&quot;]]></description>
		<content:encoded><![CDATA[<p>Karl Denninger from The Market ticker argues that it&#8217;s all hype:</p>
<p>&#8220;This is a company that has ridden the Internet Bubble 2.0 game to an extreme degree, becoming both a household name and immune to the ordinary sort of analytical process that leads to the conclusion that you&#8217;re simply spinning your wheels and floating on your stock price instead of your improving performance.&#8221;</p>
<p>&#8220;It had deteriorating ratios for more than a year and now it&#8217;s so-called investment is in fact only about 50% effective in doing anything; the rest goes into the ether.  Worse, the portion of that so-called &#8220;investment&#8221; in the business that is effective has failed to improve margins (that is, operating efficiency at the end of the day) or arrest the slide in sales growth.</p>
<p>While this might be a sustainable model if you have a 20% after-tax operating margin when your net operating margin is in fact under 1% this is a recipe for disaster, with the only hope of it not materializing being found in the pump monkey job that comes from so-called financial media.&#8221;</p>
<p>&#8220;Essentially 10% of Amazon&#8217;s business disappears where they have to collect sales tax, and large purchases are close to three times as negatively-impacted as smaller items!</p>
<p>Now who has been talking about this is going to be massively material to them as it rolls out nationally?  Uh, yep.&#8221;</p>
<p>&#8220;At today&#8217;s price, Amazon has a negative Price-Earnings ratio on current earnings &#8211; or forward projections out 12 months.</p>
<p>What happens when those who are margined up to their necks in these &#8211; and you know damn well a lot of people are &#8211; start hearing the phone ring?&#8221;</p>
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		<title>By: Felix</title>
		<link>https://www.isegoria.net/2014/05/amazons-wholesale-slaughter/comment-page-1/#comment-1246609</link>
		<dc:creator>Felix</dc:creator>
		<pubDate>Thu, 15 May 2014 23:17:24 +0000</pubDate>
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		<description><![CDATA[&quot;Take a loss for long enough to kill all their competition then raise prices?&quot;

Has anyone has ever tried to get a fair count of times someone looks like they could be doing that and then???

Count how often they raise the price, Blofeld style. 

Count how often the price never really goes back up.

I just wonder what those counts are in real life.]]></description>
		<content:encoded><![CDATA[<p>&#8220;Take a loss for long enough to kill all their competition then raise prices?&#8221;</p>
<p>Has anyone has ever tried to get a fair count of times someone looks like they could be doing that and then???</p>
<p>Count how often they raise the price, Blofeld style. </p>
<p>Count how often the price never really goes back up.</p>
<p>I just wonder what those counts are in real life.</p>
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		<title>By: Bruce</title>
		<link>https://www.isegoria.net/2014/05/amazons-wholesale-slaughter/comment-page-1/#comment-1246535</link>
		<dc:creator>Bruce</dc:creator>
		<pubDate>Thu, 15 May 2014 22:02:26 +0000</pubDate>
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		<description><![CDATA[Back in the day one of the major publishers switched from selling books to selling brown paper bags. Bigger profits, easier work. If Amazon can make a buck selling books, I won&#039;t be surprised if every other market is easier.]]></description>
		<content:encoded><![CDATA[<p>Back in the day one of the major publishers switched from selling books to selling brown paper bags. Bigger profits, easier work. If Amazon can make a buck selling books, I won&#8217;t be surprised if every other market is easier.</p>
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		<title>By: Scipio Americanus</title>
		<link>https://www.isegoria.net/2014/05/amazons-wholesale-slaughter/comment-page-1/#comment-1246510</link>
		<dc:creator>Scipio Americanus</dc:creator>
		<pubDate>Thu, 15 May 2014 21:48:56 +0000</pubDate>
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		<description><![CDATA[That&#039;s much more likely, Sconzey, if much less Blofeld.]]></description>
		<content:encoded><![CDATA[<p>That&#8217;s much more likely, Sconzey, if much less Blofeld.</p>
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		<title>By: Sconzey</title>
		<link>https://www.isegoria.net/2014/05/amazons-wholesale-slaughter/comment-page-1/#comment-1246462</link>
		<dc:creator>Sconzey</dc:creator>
		<pubDate>Thu, 15 May 2014 21:20:36 +0000</pubDate>
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		<description><![CDATA[I think the key phrase is &quot;2&#8211;4% for traditional businesses in the sector&quot;. Amazon&#039;s margin may be wider than that, which is why they can undercut.]]></description>
		<content:encoded><![CDATA[<p>I think the key phrase is &#8220;2&ndash;4% for traditional businesses in the sector&#8221;. Amazon&#8217;s margin may be wider than that, which is why they can undercut.</p>
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		<title>By: Scipio Americanus</title>
		<link>https://www.isegoria.net/2014/05/amazons-wholesale-slaughter/comment-page-1/#comment-1246441</link>
		<dc:creator>Scipio Americanus</dc:creator>
		<pubDate>Thu, 15 May 2014 21:09:59 +0000</pubDate>
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		<description><![CDATA[Take a loss for long enough to kill all their competition then raise prices?]]></description>
		<content:encoded><![CDATA[<p>Take a loss for long enough to kill all their competition then raise prices?</p>
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