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Overstock.com

Posted By Barry Ritholtz On February 16, 2007 @ 1:45 pm In Corporate Management,Earnings,Web/Tech,Weblogs | Comments Disabled

I have, for the most part, avoided the Overstock.com controversy. Herb Greenberg [1] and Jeff Matthews [2] have done yeoman’s work  on this story over the years, and my input seemed uneccessary.

Now, with the SEC dropping their investigation of the "Sith Lords [3]," and the company again  issuing disappointing sales and earnings, I have one simple question: Who owns this stock, and why?

Overstock shareholders must be 1st rate fools happy to own a 2nd rate internet retailer managed by a 3rd rate CEO whose 4th quarter numbers were awful (400-bps gross margin miss and a 100% negative variance on EPS?), and for the 5th consecutive Q [4] missed the prior sunny forecasts we can expect to be missed for a 6th time in May.

Enough already!

There are 9,000 publicly traded companies out there; Why does anyone even bother with this POS?


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URL to article: http://www.ritholtz.com/blog/2007/02/overstockcom/

URLs in this post:

[1] Herb Greenberg: http://blogs.marketwatch.com/greenberg/2006/06/more_questions_.html

[2] Jeff Matthews: http://jeffmatthewsisnotmakingthisup.blogspot.com/search?q=overstock

[3] Sith Lords: http://www.theregister.co.uk/2005/12/03/overstock_issues/

[4] consecutive Q: http://blogs.marketwatch.com/greenberg/2007/02/investors_burne.html

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