On Friday December 7th, Overstock.com, Inc. (NASDAQ: OSTK) CEO Patrick Byrne appeared on CNBC and said that the company was "having a pretty nice Christmas." But he also said that fourth quarter (Q4) GAAP net income would be between -1% and +1% of revenue due to aggressive sales promotions.The chart at right shows how the stock has responded since that day, losing more than 25% of its value. One shudders to think what would have happened if Overstock had had a "pretty bad" Christmas.
But rather than accept responsibility for his company's inability to deliver any kind of fundamental strength to shareholders, Patrick Byrne has played the diversion card: In a rambling press release put out on Thursday morning, he complained that the company has been on the SEC's REG SHO list for 666 consecutive trading days: "Apparently, the SEC is not serious about enforcing the close out provisions of Regulation SHO or stopping 'market manipulation that is clearly violative of the federal securities laws.'"
Maybe Overstock is being manipulated by short-sellers. But instead of whining about it, Byrne should shut them up the way that good companies to: Deliver on the fundamentals. A "pretty nice Christmas" that might be break-even and sends the stock tumbling doesn't count.
Nobody likes a whiner, and Byrne's track-record of under-performance and incessant complaining gives investors little reason to be optimistic -- unless of course they're short the stock.











Reader Comments (Page 1 of 1)
12-15-2007 @ 11:19AM
39.39_On_October_31st said...
so what really happened on halloween in salt lake city, utah?
12-16-2007 @ 2:31PM
lenofus said...
The 34 Act calls for prompt delivery and settlement. I don't think pointing out that there have been "fails" in OSTK for 666 days, 668 at this writing is anything but being a conscientious CEO.
For years, the dark side has been crushing company after company while declaring, "they're all &*$&^ companies", and "if they'd stop worrying about us, and concentrate on their businesses................"
Firstly, everybody checks out stock prices, and it is the basis to cost money for developmental stage companies.
Second: Naked Short Sellers, and Short Sellers, do not stop at manipulating stock prices. They plant workers at the companys, call and "warn" suppliers and customers, and, taint "research" to reflect their views.
Third: It's illegal.
Now, please address the above. You, the bloggers and press, ignored Dr. Brynes's warnings about captured press, regulators and Wall St., and the price is the Subprime mess. You've also ignored and made excuses for Naked Short Selling. That bill is coming due after the first, and it will eclipse the Subprime mess, and claim some big name brokers as victims.
Only the last sentence is conjecture; the rest of this "comment" is fact.
12-16-2007 @ 2:58PM
shawn said...
it is obvious weiss and floyd and their ilk have something to fear when justice prevails.
and it will prevail...have no doubt, there are way to many who are becoming aware of their crimes.
we will not stand by and allow them to continue
with impunity.
i've said it before, those who turn themselves in first usually get the better deals. so that is my advice to you.
or ignore it and get used to being called by a number instead of your name.
your choice.
12-16-2007 @ 3:13PM
whiteknight said...
Sorry for such a lengthy & 'rambling" attachment here from an SEC comment letter submission (scroll down after SEC intro), but Dr. Byrne brings a lot of valid & irrefutable evidence to the table. Fasten your seat belts - it's going to be a bumpy night (for some).
http://www.sec.gov/comments/s7-19-07/s71907-336.pdf
12-16-2007 @ 3:16PM
rtway said...
I find it fascinating that you have thosands of stocks with more controversy than OSTK and CEO Pat Byrne who happens to be fighting the corruption on Wall St. and the regulators who are in bed with the bad guys, but no, you cherry pick this stock and this person without giving any other information except that which is damning to the company and Mr. Byrne. Do you have an agenda concerning OSTK? If not why would you not mention all of the things he has exposed and have been admitted to by the regulatory bodies.That would take up a lot of acreage on your one sided blog. Try writing on why the prestigous N.Y. Times would write this article. It is brief http://www.nytimes.com/2007/12/16/business/16gret.html?_r=1&ref=business&oref=slogin but speaks volumes. And why not give Mr. Byrne the courtesy of responding to your blog? One more thing, why not write on why a SEC investigator is fired for turning in evidence against John Mack of Morgan Stanley that could lead to national headlines and possible charges. Lets be fair and report my reply.
12-16-2007 @ 4:43PM
mhelburn said...
What concerns me is that the SEC has not given Overstock the number of fails. It is something that should be routine. A lower level clerk should be able to respond and send the requested information. The non-delivery of information for the FOIA data exemplifies a system with no system. Better yet would be to have the information available on the internet so that the SEC wouldn't have to pay a clerk to retrieve the information and the public could have immediate access to it. Keeping this information secret and delayed is helping whom? Failing to deliver as a trading strategy is illegal. We have a regulator who is better at touting how great they are,when, in fact, they create rules that violate the Securities Act and make work for themselves when the participants abuse the loopholes the SEC has created. The SEC is supported by taxpayer dollars. ugh!
Read his article.. http://www.nytimes.com/2007/12/16/business/16gret.html?_r=1&ref=business&oref=slogin
12-16-2007 @ 7:29PM
rtway said...
I guess you didn't want to post my comments.
12-16-2007 @ 11:26PM
rtway said...
Your days of one way posting are drawing to a close you coward. Why don't you print my first post' because it is not in your best interest?
12-16-2007 @ 11:41PM
StockTracker said...
Have a look at this article - says the possibility of OSTK bottoming out at approximately $15 levels.
http://www.traderthoughts.com/Article.aspx?id=cce20da6-b7c7-4f87-b72e-7670c436a6f3
12-17-2007 @ 11:36AM
Stockperson said...
Speaking of "diversionary tactics," I see that the numbskulls have turned out in an organized bashing campaign. I received this as a private email on the Investor Village Overstock message board from "Lenofus," a major Overstock shill, obviously added as a recipient by mistake:
From: Lenofus Block PMs from Lenofus Report Abuse
Prev Next Inbox
To: , HANGMAN COMING, maximus, SteveM, waylonglvlt, more...
Move To
CC: harveedawabbitt, mhelburn, nopullnoshow, stockperson
Date: 12/16/2007 2:47:38 PM New Msg Forward Reply Delete
Subject: blogging stocks
http://www.bloggingstocks.com/2007/12/14/overstock-com-ceo-patrick-byrne-continues-diversionary-tactics/
I could use some help. Challenge these bastards from spewing their particular brand of illogical conclusion.
If we keep blasting them, they'll have to slow down or change. Notice, no comments. So, anybody that sees it, might believe it. Le'ts stop it. We don't have anything else to do.
12-17-2007 @ 12:21PM
SteveM said...
Stock price is established by the balance of supply and demand. Referring to the stock price as evidence of anything without addressing the unlimited supply created by FTDs is specious.
There is fraud in this system. Until it is corrected, stock price is also fraud.
Any other argument is just a diversion!
The SEC is required by law to enforce the existing securities laws. They haven't.
12-31-2007 @ 9:20AM
Frank Dappah said...
there is a line that i remember from the Movie: A Bronx Tale. "Nobody cares". I know the online retail game is very hrd to be in and make a profit. I know I am GM of http://www.priceshoppe.com and i know there ere shortsellers out there taking advantage of small public firms. but doesnt burn think its time to deliver on what he promised investor back in 1996. Stop complaining and build a solid company. Patricia Gallup did it at PCconnection and she only had 3k.
1-05-2008 @ 9:44PM
rtway1 said...
Feel free to explain your bravery.