Overstock's Q1 Spin Hides Some Worrying News 11 comments
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The fascinating corporate basket case Overstock.com (OSTK), and its dipsy
doodle CEO Patrick Byrne, have engaged in a flurry of activity in
recent days. Byrne has been doing stuff that didn't seem quite rational
-- like moving the Antisocialmedia.net corporate smear site to the
Overstock website.
Now we know why: Overstock is the target of yet another investigation, this one a grave criminal probe by not one but five counties
in northern California. That's on top of the active probe of its
accounting that has been slowly chugging away by the SEC for the past
two years.
This calamitous news is buried in today's Overstock first quarter earnings loss press release. It is buried so far down you'd think that Byrne could have used camouflage netting if he could:
On April 15, 2008, we received a letter from the Office of the District Attorney of Marin County, California, stating that the District Attorneys of Marin and four other counties in California have begun an investigation into the way we advertise products for sale, together with an administrative subpoena seeking related information and documents. We follow industry advertising practices and we intend to respond fully to the subpoena and cooperate with the investigation.
That's a material event, to say the least. Funny that Overstock didn't disclose it at the time, even while it was churning out a press release putting a spin on a libel suit filed recently against the company.
How come that is a "material event" and not an investigation by five counties in California? Under Sarbanes Oxley, material events must be disclosed within 48 hours, and something this grave, I would think, would have to be disclosed even sooner. Nasdaq also mandates swift disclosure of piddling stuff like criminal investigations.
As for the numbers in the press release.... stay tuned. The numbers were so hyped by Byrne in the earnings release that the stock took an enormous pop -- 35% at one point today (all but 32 cents given back by after market) -- even though the company is still losing money at such a rate that it will be out of business before long. In the past, particularly when it comes to non-GAAP accounting measures, Overstock's numbers have proven dubious, to say the least.
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This article has 11 comments:
Agree with the 35% pop. The rest of this statement is incorrect.
HERE ARE SOME OF THE MEDIA MANIPULATION HEDGES HAVE TRIED
This business plan will never work
The CEO is corrupt
The accounting is a trick to hide loses
Reporting a sale at shipping date instead of delivery date is a crime
Amazing how 2 or 3 negative stories appear at the same time. Kind of like it was pre planned and coordinated.
That lawsuit must really piss them off. The hedge boys and their lackeys are about to get the light shown on their dark deeds. Kind of like turning the lights and watching the cockroaches scurry.
The company is at about break even and that scares the hell out of the hedge funds. This means that the court case in California will continue. What’s next? Ohh yea the old mafia were going to make him have an accident. What will it be: Brake failure, Airplane falls out of the sky, ooh, ooh, I know the old suicide note saying that he was lying all the time about the good and honest hedge funds guys. Well just call them GOOD GUYs for short.
This guy is a tool. Check out his unbiased BS bashing of Overstock!
He says
1 “Byrne has been doing stuff that didn't seem quite rational” Ohhhh watch out he CEO is crazy
2. “Overstock is the target of yet another investigation, this one a grave criminal probe by not one but five counties in northern California.” My count is 2 including this one and the previous came up CLEAN. Just goes to show how the hedge funds have a hand in government. I like the word GRAVE and yet he does not detail the alleged misdeeds of Overstock. The CEO said he will cooperate and supply all the info requested. He is aware that another Hedge Fund initiated witch hunt is being started.
3. “active probe of its accounting that has been slowly chugging away by the SEC for the past two years.” Half truths, the SEC withdrew its probe.
4. “even while it was churning out a press release putting a spin on a libel suit filed recently against the company.” Well that guys filing the suit are in court now trying to delay the case against then in California for 3 billion dollars for market manipulation, naked short selling, and planting (in collusion with the hedge fund) false stories in the media. This suit is a stalling tactic since disclosure was granted to Overstock and the next step is the court case. For 3 Billion dollars I guess I would try and delay , especially if I was caught red handed and my own ex-employees were testifying against me.
5. “swift disclosure of piddling stuff like criminal investigations.” Wow we went from an inquiry to criminal probe. I guess for Weiss getting laid is the same as getting married and having a baby. Isn’t it something that the news is release the same days as OSTK approached break even. I guess you could try and hold down a rally especially if you held a huge naked short position.
6. “hyped by Byrne in the earnings release that the stock took an enormous pop -- 35% at one point today” Well care to tell where the hyping occurred? Sounds like a smear to me.
7. “all but 32 cents given back by after market” Amazing how the stock goes UP $4.47 or 31.93% in regular hours and yet is up only .32 cents by the close of after hours. This is the typical BS manipulation the hedge funds do to give the impression of no interest. It is easy to manipulate a stock after hours since there is typically LOW VOLUME. It is easy to manipulate investors that don’t know this.
I wonder what OSTK CEO will do with billions? My guess he will declare a dividend of let’s say $20 per share just to screw the companies that participated in the naked short selling.
For individuals to be 'saviors' looking out for the best interests of the investing public they sure have a funny way of showing it. I am personally interested in who is financing this campaign of trash talk by these individuals.
Can you guys get on the same page? It seems you guys want Overstock to announce an investigation into their advertising (negative) at options expiration but not quarterly results (positive). Is that because you guys had outstanding puts in the market? Notice they announced both on the same day.
A "grave" investigation? They'll be out of business soon?
Stop embarrassing yourself, moron.
As for your gibberish about Overstock being out of business soon, purely from a financial statement perspective, you have absolutely no basis for such a silly claim. Stop allowing your hatred for Byrne to cause you to behave like a petulant child.
P.S. The article submitted by your criminal co-writer is equally specious and silly. What sad men you are.