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elgato
Joined: 24 Feb 2005
Posts: 17240
Location: Texas
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| Posted: Wed Aug 11, 2010 11:45 am Post subject: Overstock's CEO Misled Investors About Earnings |
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I have reported frequently on a range of securities law violations by Overstock.com (NASDAQ: OSTK). The company’s latest earnings report on Aug. 9 raises still new questions, concerning possible insider trading and misleading statements by the company’s CEO, Patrick Byrne.
On Aug. 9, Overstock.com issued its Q2 2010 10-Q (quarter ended June 30) report and surprised investors by reporting a $1.4 million loss, or a loss of $0.06 per share, compared to a small $319k reported profit or earnings per share of $0.01 in the previous year’s comparable quarter, despite higher revenues.
Overstock.com failed to meet consensus analyst expectations for earnings, too. Overstock.com’s reported loss of $0.06 per share was far worse than analyst expectations of a $0.04 per share loss or a 50% higher loss than expected.
A disturbing event preceded this announcement.
On May 20, 2010, Patrick Byrne's 100% controlled High Plains Investments LLC dumped 140,000 company shares and collected over $3 million in proceeds during the last several days, according to SEC filings. That was the first time that Patrick Byrne had ever sold any Overstock.com shares under his control. In my blog, I noted that such a sale was “not a bullish signal to investors.”
more.. link to news article |
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Patty00
Joined: 13 Dec 2005
Posts: 1018
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| Posted: Wed Aug 11, 2010 1:59 pm Post subject: |
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| I'm just mystified by this site. I do list some auctions there - but it seems nobody even knows Overstock runs auctions. They advertise a lot but never a word about auctions. Their home page has a tiny auctions tab at the top but nothing else. Its kind of sad because when they first started up I thought for sure they would be serious competition for Ebay. Then...all of a sudden they stopped pushing auctions. Even closed their forums for awhile. Its almost like they've been pushed around by Ebay??? Unfortunately, I don't think its been managed well over the years and I don't see a rosy future for Overstock :-( |
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resale
Joined: 10 Aug 2008
Posts: 245
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| Posted: Thu Aug 12, 2010 3:56 pm Post subject: Re: Overstock's CEO Misled Investors About Earnings |
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| I wonder if Donahoe will be next....... |
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xbaystores
Joined: 30 Oct 2006
Posts: 562
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| Posted: Fri Aug 13, 2010 9:30 pm Post subject: Re: Overstock's CEO Misled Investors About Earnings |
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resale wrote (View Post): › docWrite("quote")I wonder if Donahoe will be next.......
Remember when we used to say that about Meg and Bill... look what happened!
I've thought Patrick Byrne was a POS ever since he insulted the auction sellers several years back when they questioned his judgment in cancelling the subscriptions. I lost a great deal of sales from his decisions.
Good luck with the SEC Pat. |
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