Monday, February 06, 2006

When Will the Bloodbath End?

The Overstock (OSTK) horror show seems to have no end in sight.

The issued the following note, just minutes ago:
"...OSTK has been getting a lot of attention lately, but little of it focuses on the issues that really matter to shareholders. A closer examination of the online retailer's fundamentals reveals rapid revenue growth that has failed to yield profits, not an encouraging sign. In addition, Overstock's financial position may not be as strong as it may seem at first glance. In our opinion, Overstock -- recently down 1.5% to $23.50 -- is best avoided ahead of its fourth-quarter report Tuesday morning."
In the last few minutes, shares are trading sharply lower.

As you should recall, we've had a $17 price target on Overstock for months.

Our sources are telling us that Overstock CEO Patrick Byrne may announce his resignation tomorrow, but that has yet to be confirmed.

In the meantime, we can't find one compelling reason to buy this stock, especially in the wake of last week's dismal Amazon (AMZN) 4Q report.

About Us | In the News | Management | Contact Us | Archive | Premium Membership | Terms of Use | Privacy Policy | Careers | FAQ

All quotes are 15 minutes delayed. Copyright © 2006 by Catablast! Media Group LLC, part of the SeekingAlpha network. Web Design by Synexio Systems. All Rights Reserved.