Overstock.com: Alarming Business Trends, Sharply Negative Site Metrics, Heavy Spending On Corporate Coliseum Suggest Trouble
ACM Research Team • 14 Comments
ACM Research Team • 14 Comments
Fri, Nov. 4, 12:58 PM
Thu, Nov. 3, 5:13 PM
Tue, Oct. 25, 3:00 PM
- Overstock.com (OSTK -0.3%) announces that it will launch a non-transferable rights offering.
- The company says the offering will allow shareholders to purchase shares of its preferred stock, including shares to be traded exclusively on a registered alternative trading system using the t0 issuance and trading platform.
- Overstock is planning the rights offering primarily to demonstrate the operating capabilities of the t0 platform, while also providing shareholders the opportunity to participate.
- Overstock says it plans offer up to 1M shares of the preferred stock, and will give stockholders the opportunity to subscribe for shares of its Blockchain Series A that are set to trade on the alternative trading system.
- “Through this public issuance of blockchain-based securities the history of capital markets is entering a new era, the era of blockchain-based securities," states Overstock.com CEO Patrick Byrne.
- Source: Press Release
Thu, Aug. 4, 4:26 PM
Wed, Jul. 27, 4:03 PM| Wed, Jul. 27, 4:03 PM | 2 Comments
Sat, May 28, 12:11 PM
- The retail sector staged a comeback over the last two weeks after a decent number of companies issued strong reports to dispel some of the concerns on sleepy consumer spending in the U.S. Retailers with a sharp focus on lower price points and an e-commerce business out of Amazon's (NASDAQ:AMZN) wheelhouse stood out.
- Ulta Salon (NASDAQ:ULTA): Sales growth sizzled for the company in Q1 and the future looks equally bright with the company's overall beauty market share only at 3%. "Ulta’s very compelling proposition of modern marketing, brand partnerships, and service offerings also strongly appeals to millennials," wrote Cowen's Olivia Chen. ULTA shares are up 26% YTD after Friday's post-earnings rally.
- Ollie's Bargain Outlet Holdings (NASDAQ:OLLI): The discounter delivered revenue growth of 21% and a comparable-store sales gain of 5% in Q1 to leverage off some fixed costs. Wall Street loves the stock (7 of 8 ratings at Buy), while several SA contributers have deep dives into the long-term "white space" opportunity with OLLI.
- Big Lots (NYSE:BIG): Shares sailed 14% on Friday after strong earnings and are now up 32% YTD. Younger homeowners are giving Big Lots more traffic than some expected as they skip department stores. SA contributor Christopher Davis likes the fundamentals in place and makes a strong case why Big Lots has more room to rally.
- Michaels Company (NASDAQ:MIK): Shares are up 27% over the last 90 days as more investors decouple their view on the stock from broad concerns over brick-and-mortar chains. The crafty Michaels has some protection from the Amazon threat and continues to gain popularity with thrifty shoppers.
- Overstock.com (NASDAQ:OSTK): Though there's been bouncy trading around Overstock, many analysts think it's in the right space at the right time with millennials on board with its model. Shares are at their highest level in more than six months. An investment in OSTK is also a bit of side bet on blockchain technology. SA contributor Fortress Capital explains.
- Add your own under-the-radar retail gems in the comment stream.
Thu, May 26, 7:22 AM
Wed, May 11, 12:28 PM
- "The mall is not dead, it has just moved online," asserts EQM Indexes CEO and SA contributor Jane Edmondson. Though her analysis is not entirely new, it's certainly well-timed amid a battering of mall-based chains this week (see reports on L Brands, Gap, and Macy's for some of the carnage details).
- EQM licensed its online retail index to ETF provider Amplify Investment for use in the new Amplify Online Retail ETF (NASDAQ:IBUY).
- The online retail ETF lists Copart (NASDAQ:CPRT), NutriSystem (NASDAQ:NTRI), PetMed Express (NASDAQ:PETS), Shutterfly (NASDAQ:SFLY), Amazon (of course), PayPal (NASDAQ:PYPL), Stamps.com (NASDAQ:STMP), Grubhub (NYSE:GRUB), Overstock.com (NASDAQ:OSTK), FTD Companies (NASDAQ:FTD), Wayfair (NYSE:W), Netflix (NASDAQ:NFLX), Priceline (NASDAQ:PCLN), and Lands End (NASDAQ:LE) as top holdings.
- The fund has only traded for a few weeks, but could catch some attention with the ground shifting underneath traditional retail.
- Earlier today, the Global Millennials Thematic ETF (NASDAQ:MILN) was highlighted. This ETF shares some of the same holdings as the online retail play and has Amazon as its top holding.
- Complete list of Amplify Online Retail ETF holdings
- Previously: Amazon rambles to all-time high amid retail chaos (May 11)
Tue, May 3, 4:45 PM
- Overstock.com (NASDAQ:OSTK): Q1 EPS of $0.53
- Revenue of $413.68M (+3.9% Y/Y)
- Shares +2%.
Fri, Apr. 29, 3:43 PM
- With the help of "security experts, cryptographers, hardware experts and researchers," IBM (IBM -0.8%) says it has created a slew of cloud services meant to enable secure blockchain networks, along with cloud apps leveraging them. Financial services, healthcare, and government clients are among the firms being targeted.
- BNY Mellon is an initial user of the service - the bank plans to create "a unique application for securities lending, using a blockchain network to trade and transfer assets." IBM promises its cloud platform will "allow production blockchain networks to be deployed in minutes," while supporting Docker containers (alternatives to server virtual machines that run on Linux and feature little overhead), data dashboards, and analytics tools.
- While the hype surrounding Bitcoin (COIN, OTCQB:BTCS) has cooled some, corporate interest in the blockchain - the distributed/encrypted ledger technology that powers Bitcoin and other cryptocurrencies - for enabling cheap and secure transactions remains high. JPMorgan, Goldman, and other i-banks unveiled plans last year to create standards for using blockchain in the financial industry. In March 2015, Reuters reported IBM has held informal talks with central banks about creating a system for enabling blockchain-based transactions that don't require a bank or payment processor.
- IBM exec Jerry Cuomo: "We love blockchain technology because it holds the promise of supporting a very wide variety of industries ... But if you are building a blockhchain that deals with health records or shipping logistics, financial data, or any reference data about products, there are rules regulatory rules and security you have to address." He asserts IBM's solution was designed with those security/compliance issues in mind.
- Online retailer Overstock (OSTK -2.1%) has also been making big blockchain investments; it's eight months removed from buying financial order-routing firm SpeedRoute to provide an infrastructure for its t0 blockchain software.
- Now read IBM's Next Big Thing
Tue, Apr. 12, 10:18 AM
- A day after announcing founder and long-time CEO Patrick Byrne is taking a medical leave of absence, Overstock (OSTK +1%) says it has named SVP/general counsel Mitch Edwards its acting CEO.
- Notably, Overstock adds Byrne "had recommended that the board of directors appoint Edwards as his successor, citing his experience as 'an outstanding full-spectrum entrepreneur,' along with his understanding of both Overstock.com’s core businesses and blockchain-based crypto initiatives."
- Chairman Jonathan Johnson: "The board of directors is confident that Mitch is the right choice to continue the growth of the company. His past experience and ability to lead the existing management team makes him ideally suited for the role of acting CEO."
Mon, Apr. 11, 6:59 AM
- Overstock.com (NASDAQ:OSTK) Patrick Byrne announces that he will take a medical leave of absence from his duties.
- The company says it's unknown if he will return to his position.
Wed, Mar. 16, 4:26 PM
- Overstock (NASDAQ:OSTK) plans to sell 1M shares of preferred stock to its shareholders at a yet-undisclosed price. Notably, the shareholders can buy either regular preferred stock or blockchain preferred stock that will settle and trade exclusively via Overstock's t0.com platform and alternative trading system (ATS).
- CEO Patrick Byrne has been a fervent blockchain supporter. However, with blockchain investments weighing on Overstock's bottom line - $8M was spent on them in 2015 - Byrne stated in the Q4 report Overstock could separate its blockchain ops if synergies with the company's core online retail ops don't "prove out."
- Shares closed up 3.1% today. The Nasdaq rose 0.8%.
Wed, Feb. 10, 12:42 PM
Wed, Feb. 10, 12:04 PM
- Beaten-down Overstock (NASDAQ:OSTK) is soaring after reporting Q4 revenue rose 2% Y/Y to $480.3M, and net income fell to just $110K from $1.4M a year ago.
- Gross margin fell 85 bps Y/Y to 17.3%, sales/marketing spend rose 3% to $38.3M, and G&A/tech spend rose 3% to $47.9M. $8M was directly spent in 2015 on blockchain investments, via Overstock's OLabs unit.
- Overstock had 2015 free cash flow of -$5M; 2014 FCF was $39.5M. The online retailer ended 2015 with $170.3M in cash and $9.5M in long-term debt.
- CEO Patrick Byrne on Overstock's blockchain efforts: "I am exploring a possible synergy between these two wings of our business (retail and our capital markets innovation), but if it does not prove out they will be separated. Given our comfortable cash position, strong cash flow and consistent profitability, I would describe my approach to this as, brisk but not scrambling."
- Overstock's Q4 results, earnings release
Tue, Feb. 9, 4:09 PM
- Overstock.com (NASDAQ:OSTK): Q4 EPS of $0.00
- Revenue of $480.27M (+2.1% Y/Y)
- Shares -0.77%.