Um did you see the Overstock interview?
That was one of the most acrimonious interviews I have ever seen. It was some great unintentional comedy. Given the dynamic it would be reasonable to wonder why the guy agreed to the interview.
There was contention from the first question. If they had let Herb Greenberg participate, it might have been an all out donnybrook.
I have never been long, short or had any other type of position nor do I intend to take any position. I cannot recall a CEO behaving in this manner. I think it took Becky three times to get him to answer about the cash flow/cash on hand issue but then he said something about year end (or at least that what it sounded like) as Becky started to ask another question. Who knows how that fit in to the answer?
Amazing.
Wikinvest Wire
4 comments:
I assume you do regularly read Jeff Matthews' blog, right? I am sure if you do, you won't be surprised by the way the interview went.
I personally don't have anything in Overstock right now. My money manager got a long position a few years ago, but after a few conf with the guy late 2004, he and his guys dumped all the long shares for his clients and established quite a large short position. It has worked out pretty well so far. I haven't check lately, they might've covered the position. At this point, it's just a circus. sit back, relax, and enjoy the show.
I actually just saw the video. I have a different take. I thought the journalist (??) was combative and was trying to bait Patrick. When asked about OSTK's cash position I didn't see the confusion you reference. His first response included just the cash and he then amended his comment to include equivalents.
Patrick does come off as eccentric and different. However, in my experience, he is honest to a fault and extremely transparent. In addition, I think he is a brilliant business person and his people would take a bullet for him. Granted, I (and am sure he) wish he hadn't taken up the NSS issue. It has no doubt been a huge distraction and has impacted OSTK's operational and financial performance.
My personal prognostication is they will pull way back on growth (to 25%) and cut marketing spend to 5% of revenues. You'll see SG&A at about $100k and the share count will stay pretty close to flat. That will bring them to breakeven by the end of 06.
At this point, any position (long or short) is a bet on mgmt. Keep in mind, Patrick has been through far, far worse than this. In addition, he has an outstanding BOD providing him with sound advice.
Best, Parkite
(no position, but writing puts in the high teens)
parkite,
I am not saying you are wrong but I haven't found a take remotely like yours anywhere else.
It took three tries to get a cash flow number and I found the signs with the URLs to be wierd.
There are two sides to every trade, eh?
I could very well be wrong. That is what makes the market so interesing.
No, you haven't seen a post like mine b/c my stance is very contrarian. What does Buffett say about the wisdom of crowds? And you won't find a take like mine in the mainstream media. I know this situation better than most and that is why I have written some puts. We'll see.
I do agree the sign was weird and I wish he would drop the whole NSS thing and focus on the core business. When he does this he is very effective.
Post a Comment