Posted on 08/14/2019 6:56:59 PM PDT by yesthatjallen
Shares for the internet retailer Overstock have plunged more than 30 percent this week after its CEO issued a statement saying that he assisted efforts to investigate Russian interference in the 2016 election.
The e-commerce company's stock has fell by 36 percent since Monday, a figure that represents its biggest two-day hit in 11 years, Bloomberg News reported.
The significant slide began after CEO Patrick Bryne came out with a statement about what he referred to as the "deep state."
"Starting in 2015 I (operating under the belief that I was helping legitimate law enforcement efforts) assisted in what are now known as the Clinton Investigation and the Russian Investigation," Byrde said on the company's website. "It was the third time in my life I helped the Men in Black."
I will speak no more on the subject, he continued. Instead, having lived in places lacking Rule of Law and having witnessed the consequences of its absence, I plan on sitting back and watching the United States Department of Justice re-establish Rule of Law in our country.
Bryne did not address any specifics regarding the aid he offered the investigation. His statement appeared to have come in response to an independent journalist's story about the Russia probe.
Bloomberg News noted that Byrne has a history of making unusual statements. Among other things, the CEO has compared the e-commerce giant's cryptocurrency goals to the polio vaccine, the news outlet noted.
Overstock becomes the latest company to see its stock tumble following controversy related to politics. Wayfair, an online furniture company, has experienced a 7 percent plunge in stocks since employees discovered it sold beds to a detention facility housing migrant children, The Washington Post noted.
Employees found out in June that a nonprofit government contractor managing migrant camps placed a $200,000 order for bedroom furniture.
Gotta buy something from Overstock right now.
My daughter got incredible room-sized rugs at unbeatable prices.
“If the stock price is going down, now is the time to buy!”
In this case — NO. The stock went down 80% last year. I wouldn’t touch this stock ... and I never base investments decisions on politics.
https://www.fool.com/investing/2019/01/20/heres-where-things-went-wrong-with-overstock-in-20.aspx
Author of article
Dudes name is spelled three diffent ways just in the excerpt.!!!
+++++
LOL. Nice catch. Very nice catch.
More details here.
2018 they went all in on selling/gen administrative costs, mostly driven by advertising and didn’t get the payback.
Looks like so far this year they’ve cut that back dramatically - down about 50% YTD in a quarter to quarter comparison. Not in the green yet, but at least they turned the ship’s direction based on the last 4 quarters.
I’m thinking of dropping a small buy.
“Im thinking of dropping a small buy.”
Based on what facts? In 2018 they lost 80%. That is not just the result of some things that didn’t go right. That is a stock with some very serious problems.
Based on a 50% reduction in Sales/gen admin expenses in 2019 quarter to quarter compared to 2018 and EPS going from -2.20 to -0.69 and cash flow while still negative is improving in a similar fashion over the same time frame. Plush in ‘18 they retired a bunch of debt without issuing new. So overall fundamentals are improving.
They were overbought big time in 2018 and they appear to be back to prior year price levels with better sales and earning. Charts also indicate they are at a level that is oversold now.
It’s not like I’m going all in, and since they don’t pay a dividend I’ll be buying a few January calls on a limit. If I don’t get my price then I don’t get’em.
“Dudes name is spelled three diffent ways just in the excerpt.!!!”
Good editing! Byrne, Bryne and Byrde. Wow. Goofy writer.
Modern urinalism in its full glory.
I kind of like “Bob Hard”. It could become another FReeperism like Jim Thompson.
Ha! Actually, I think that’s better.
Alrighty then. Things are making more sense now. And he’s a writer. If straight, he’s probably dating that chick whose mommy called her boss over the spelling of “hamster” (hamPster). As long as THEY think it’s right. It’s right. Their teachers told them so!
The company is being heavily shorted, like 75%. (Shorting is the borrowing of stock to sell at a high price in order to drive the price down, then to hopefully buy shares at a lower price, returning the borrowed shares to the original owner)
Their stock ‘has fell’.
Sharp reporter.
By his own admission, he helped the lawless Deep State, IOW.
UPDATE: Overstock’s stock soars after controversial founder and CEO Patrick Byrne resigns, effective immediately
Today 12:34 PM ET (MarketWatch)
Shares of Overstock.com Inc. (OSTK) soared 15% in midday trading Thursday, after controversial Founder and Chief Executive Patrick Byrne resigned from discount e-commerce site Thursday, effectively immediately, saying he was “far to controversial” to serve as CEO. The resignation comes after Byrne said last week that he had assisted in the Clinton and Russian investigations (http://www.marketwatch.com/story/overstock-shares-fall-as-ceo-gets-even-more-nutty-and-unpredictable-2019-08-13), and was actually the notorious missing “Chapter 1” of the Russian investigation. He also said he was romantically involved with jailed Russian agent Maria Butina. In a letter to shareholders Thursday, Byrne said he was concerned that his going public about “certain government matters” may affect and complicate strategic discussions regarding the retail business. “Thus, while I believe that I did what was necessary for the good of the country, for the good of the firm, I am in the sad position of having to sever ties with Overstock, both as CEO and board member, effective Thursday August 22,” Byrne wrote. The company named board member Jonathan Johnson as interim CEO. Byrne had launched Overstock.com (https://www.overstock.com/about) in late 1999. The stock has run up 64.6% year to date, while the Amplify Online Retail ETF (IBUY) has climbed 23.5% and the S&P 500 has gained 16.5%.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.