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OSTK - Overstock.com


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Overstock on fire!  Run baby run!  Finally market value is catching up to intrinsic value.  Byrne says will take private by end of year if the stock does not move up.    Also, OSTK looking to separate blockchain investments with main business.  Simplicity in the story should attract investors.  Goal is to make investors compare Wayfair with OSTK.  Look at market cap to sales.  Ridiculous...

 

Do you have the source where he said that? Just curious. No position so far.

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Here you go.    Page 12 and 13.  Thanks!

 

file:///C:/Users/spark/Downloads/OSTK-USQ_Transcript_2017-08-03%20(1).pdf

 

That is a link to a file on your computer.

 

EDIT: I found it online though.  Thanks for the tip on where to look.

https://seekingalpha.com/article/4095247-overstock-coms-ostk-ceo-patrick-byrne-q2-2017-results-earnings-call-transcript?page=11

 

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"I’d be very interested in going private. And probably looking for the right partner, have some ideas."

 

Wonder if he's referencing Prem given their history and the comment about looking for the right partners? Maybe I'm just biased given this is a Fairfax forum and I'm a member...

 

Wish he'd given us a better idea of the value he sees in the company to know what his benchmark is for making something "strategic" happen. The stock is up nearly 30% since those comments so maybe that was enough to hold off any of the planned changes.

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  • 5 weeks later...

Congrats to those still in this!

 

We bought tons in May and August...in fact, it was going to be double the size of any of our positions, but the order in August was only 1/5th filled!  :(

 

We have not sold any...fair value is in the $37-45 range, especially if they spin-off the blockchain business...that's about $10-13 by itself in this market, and Overstock retail is about $27-35.

 

Cheers!

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I hope the purchase was in a PDH account!

 

Congrats to those still in this!

 

We bought tons in May and August...in fact, it was going to be double the size of any of our positions, but the order in August was only 1/5th filled!  :(

 

We have not sold any...fair value is in the $37-45 range, especially if they spin-off the blockchain business...that's about $10-13 by itself in this market, and Overstock retail is about $27-35.

 

Cheers!

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  • 3 weeks later...

Congrats to those still in this!

 

We bought tons in May and August...in fact, it was going to be double the size of any of our positions, but the order in August was only 1/5th filled!  :(

 

We have not sold any...fair value is in the $37-45 range, especially if they spin-off the blockchain business...that's about $10-13 by itself in this market, and Overstock retail is about $27-35.

 

Cheers!

 

Many years back I owned OSTK only to come back in a year or so ago after sitting out for maybe a decade. However, I bought small and pared it back in early 2017 and kept a small position until recently when I doubled it. So, it's still miniscule.

 

That said, I'm really curious about your reasoning in trying to as you said: "going to be double the size of any of our positions".

 

 

Now that there's talk of taking it private, I see the management in a new light. It shows a willingness either one, pump one's stock when proper financial reporting fails, or two, to thoroughly screw over existing, possibly very long term minority shareholders - usually at a price well below intrinsic value as estimated by those most able to determine it - the insiders themselves. No easier way to transfer wealth from your partners to yourself. (Wealth being not just the current value but the fact that it exists at all.)

 

Note: as someone that traded in and out - I had no long term loyalty but I'm sure there would be others that have likely stuck with it for many many years.

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So what is the fairest thing to say? That OSTK is now attracting a lot of speculative buying or that it is or has been fundamentally undervalued?

 

Seems like it was fundamentally undervalued and the company shrewdly stoked speculative buying to catalyze that value. Not really my cup of tea, but I should have bought this. The setup was pretty obvious.

 

For those who own already, I recommend holding. Speculation can take this much higher.

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  • 2 weeks later...

 

Will Overstock's $500 Million ICO Trigger An Explosion In Blockchain, Cryptocurrencies?

 

Oct. 26, 2017

 

https://seekingalpha.com/article/4116812-will-overstocks-500-million-ico-trigger-explosion-blockchain-cryptocurrencies

 

 

 

Overstock.com: Blockchain And Used Cars?

 

Oct. 26, 2017

excerpt:

"If Overstock wants to cut expenses and further improve profitability, the next natural move is to move its e-commerce payments’ system to the blockchain. Without intermediaries but computers executing transparent trades between parties via smart contracts, costs can be significantly reduced. Many value added functions are under development to more efficiently and securely facilitate payments processing. Digital identities, for example, will soon update and encrypt universal customer IDs and credit profiles in real time. Overstock will not have to conduct its own credit checks before releasing a car loan to the bank accounts of car buyers. It might still be too early to say,..."

 

https://seekingalpha.com/article/4116724-overstock-com-blockchain-used-cars

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Seems like it was fundamentally undervalued and the company shrewdly stoked speculative buying to catalyze that value. Not really my cup of tea, but I should have bought this. The setup was pretty obvious.

 

For those who own already, I recommend holding. Speculation can take this much higher.

 

Damn, I wish I had listened to you.

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“Reflecting the high interest in bitcoin and blockchain, Byrne said about 850 people dialed into Overstock's third-quarter earnings call, according to a StreetAccount transcript. Byrne also said the call could be his last with the company as it currently exists.”

 

https://www.cnbc.com/2017/11/10/overstock-may-soar-if-sells-e-commerce-focuses-on-bitcoin-blockchain.html

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Crazy good.    Listen to the last 2 minutes.  Clearly state catalyst.  Will be interesting to see how much higher it goes.  I think the market cap equaling the total revenues is reasonable.  Thoughts?

 

 

I just sold half of my shares last week so I expect the stock to at least triple from here.  If there is one thing I do consistently it is sell way too early.

 

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i'm having the same issue.  I keep selling 10% of shares at certain weight of portfolio but after I sell it keeps going up.  I'm reminded how hard it is to hold onto a stock like buffett and get the large returns.    At 1x sale we're looking at 1.8B which means about 20% above today's price.    using pabrai's 90% of intrinsic value method, it should mean i should sell at 10% of today's stock price.  very hard to decide what to do.  the target prices assumes no value on the t0 stuff.  hold like buffett or sell like pabrai?

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Crazy good.    Listen to the last 2 minutes.  Clearly state catalyst.  Will be interesting to see how much higher it goes.  I think the market cap equaling the total revenues is reasonable.  Thoughts?

 

 

I just sold half of my shares last week so I expect the stock to at least triple from here.  If there is one thing I do consistently it is sell way too early.

 

i'm having the same issue.  I keep selling 10% of shares at certain weight of portfolio but after I sell it keeps going up.  I'm reminded how hard it is to hold onto a stock like buffett and get the large returns.    At 1x sale we're looking at 1.8B which means about 20% above today's price.    using pabrai's 90% of intrinsic value method, it should mean i should sell at 10% of today's stock price.  very hard to decide what to do.  the target prices assumes no value on the t0 stuff.  hold like buffett or sell like pabrai?

 

Explain to me why you two are crying over this...after making such wonderful investments and enjoying terrific returns?  The glass is half-full, not half-empty.  Sell if you can't sleep...hold if you can sleep.  Cheers!

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Crazy good.    Listen to the last 2 minutes.  Clearly state catalyst.  Will be interesting to see how much higher it goes.  I think the market cap equaling the total revenues is reasonable.  Thoughts?

 

 

I just sold half of my shares last week so I expect the stock to at least triple from here.  If there is one thing I do consistently it is sell way too early.

 

i'm having the same issue.  I keep selling 10% of shares at certain weight of portfolio but after I sell it keeps going up.  I'm reminded how hard it is to hold onto a stock like buffett and get the large returns.    At 1x sale we're looking at 1.8B which means about 20% above today's price.    using pabrai's 90% of intrinsic value method, it should mean i should sell at 10% of today's stock price.  very hard to decide what to do.  the target prices assumes no value on the t0 stuff.  hold like buffett or sell like pabrai?

 

Explain to me why you two are crying over this...after making such wonderful investments and enjoying terrific returns?  The glass is half-full, not half-empty.  Sell if you can't sleep...hold if you can sleep.  Cheers!

 

I’m not crying. That’s why I held onto half of my shares so that I can sleep either way it goes.

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i'm having the same issue.  I keep selling 10% of shares at certain weight of portfolio but after I sell it keeps going up.  I'm reminded how hard it is to hold onto a stock like buffett and get the large returns.    At 1x sale we're looking at 1.8B which means about 20% above today's price.    using pabrai's 90% of intrinsic value method, it should mean i should sell at 10% of today's stock price.  very hard to decide what to do.  the target prices assumes no value on the t0 stuff.  hold like buffett or sell like pabrai?

 

Why should it trade at 1x sales?  I think it should be based on earnings alone.  I could care less about their sales if they can't make a profit.

 

I think 60-75% of the value of the company right now is t0.  t0 seems very speculative right now.  It could be worth billions and OSTK is still under-valued or it could be worth nothing.

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