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Good news for Overstock.com (NASDAQ: OSTK) customers: The company ranked number 1 in the Online Customer Respect Study issued by the Customer Respect Group for the fourth quarter of 2007.In a press release announcing the accomplishment, CEO Patrick Byrne said, "Our No. 1 ranking is more validation of our overwhelming focus on treating our customers respectfully and honorably. We want to offer the best deals on the web while being the easiest and safest site to use."
It's great that Overstock's customers are being treated well, but how about the company's investors? Overstock has an accumulated deficit of over $238 million -- so the company's service to its investors has been subpar at best.
But that's all OK, because Overstock has a "overwhelming focus on treating our customers respectfully and honorably." Profits be darned!
Here's an idea for Overstock: Just start giving your merchandise away. Sure it would result in huge losses, but so has the company's current strategy. And it would do wonders for customer satisfaction, which is your overwhelming focus.
Meanwhile, shares of Overstock have lost over half their value since early November, in part because of Byrne's announcement that the company was having a "pretty nice Christmas."
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Reader Comments (Page 1 of 1)
12-19-2007 @ 6:52PM
lenofus said...
Interesting. Byrne's stock lost half its value in part because of his announcement.
For whatever reason you have a grudge here, it is unknown to me. But, as bashers do, you repeat the same refrain over and over. So, I will too, if you will allow me.......
Byrne said nothing that a Stifel analyst didn't say the week before. It should be obvious if you spend on ads to grow your business, it will reflect itself in margins.
Monday, the stock was down five, IN A STRAIGHT LINE. Why? It was, after all , reported in WWD, that Monday was the biggest day in the history of the company with sales of 12mm. Doesn't this all seem a bit odd? He says nothing new, but the Press picks up on it as a reason why the stock is down five, which itself is suspicious at best, considering the volume they did that particular day. But then again, FRPT looks similar.
Could it be, with pressure on Reg Sho stocks, that those responsible created a bear raid using Option MM exemptions, then, just moved the fails to x clearing, which does not show in our system, and the SEC distances itself from? You hit a man in the back of the head with a pipe, and cops are watching in case he dies. After 669 days in a coma, he comes to. No harm, no foul? I don't think so.
I do not own Overstock. But I'm for free markets, and this is not a free market. If you don't like the business model, fine. But why not speak out on this obvious manipulation? Maybe then, you'd get some readers.