Get Shorty: Overstock
Another squeamish analyst appeared on CNBC this morning, armed and ready to berate online retailer Overstock (OSTK).OSTK is a company we advised readers to dump last week:
CEO Pat Byrne seems to be very good at scapegoating externalities and dressing his company's ($650 million dollar market value) shortcomings in convoluted tropes and pop culture innuendo. Shares are suffering; a quick glance at OSTK's daily chart this morning revealed a major downtrend. The fundamentals underlying the chart are just as horrific: So far this year, Overstock has burned through at least $80 million by our count. That leaves Overstock with $77 million in cash and marketable securities, versus $290 million at the beginning of the year. Even more, inventories have more than doubled to $90 million, and shopper acquisition costs continue to rise. We're forecasting further erosion in Overstock.com's share price...If you've never listened in on an OSTK conference call, you're missing out some some of the most salacious stuff Wall Street has to offer.
Shares of OSTK have been trounced ever since CEO Pat Byrne -- caught in a catatonic state of corporate paranoia -- claimed that there was a "conspiracy" against him and his company.
What conspiracy, Patrick?
OSTK is an online liquidator mired in operational woes.
You're hemorrhaging money.
Of course the shorts are going to hunt you down.
Welcome to the jungle.
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