Amazon builds in Canada

Article Excerpt

AMAZON.COM $146.43 (Nasdaq symbol AMZN; SI Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 445.5 million; Market cap: $65.2 billion; No dividends paid) has received approval from the federal government to open a $20-million distribution centre in Canada. In 2002, the government let Amazon open a Canadian web site, www.amazon.ca, but would not let the company build a warehouse because of concerns about foreign ownership of Canadian cultural industries. Right now, Canadian orders are handled in the United States, and shipped into the country through a subsidiary of Canada Post. The new warehouse should help Amazon cut its costs. That should let it gain market share in Canada by lowering the prices of its books and merchandise. Amazon.com is still a hold. hold…