Overstock Surges -- A Value Bull Weighs In (OSTK)

Mar.15.06 | About: Overstock.com, Inc. (OSTK)

Yesterday, Overstock.com (OSTK) shares were up about 11%. Over the last two days, shares of Overstock have dramatically increased in price. The increase has been close to 20% for the week. I’m just writing this quick note to assure readers that this price change is small relative to the discount to intrinsic value at which Overstock is selling.

Over the last two months, I have written about the company while its stock was trading at various prices. Nothing has changed. Everything I have written remains as valid today as it was when I wrote it. The market is still valuing the company at a fraction of its true value. If you are interested in purchasing shares of Overstock, you shouldn’t let the relatively small increase in the stock price scare you off.

If you are still undecided, there is no reason to act hastily. First, come to a conclusion as to Overstock’s value. Only after doing that should you check the market price.

Simply put, this post is to assure you that nothing has changed and to encourage patient, confident action based on your assessment of the facts at hand, rather than on emotions such as fear, greed, or anxiety.

OSTK 1-yr chart:

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