http://www.sequenceinc.com/fraudfiles/2008/11/03/gross-incompetence-at-overstockcom/ Tue, 09 Feb 2010 19:48:29 -0800 http://wordpress.org/?v=2.8.6 hourly 1 http://www.sequenceinc.com/fraudfiles/2008/11/03/gross-incompetence-at-overstockcom/comment-page-1/#comment-166828 john lichtenstein Wed, 05 Nov 2008 05:06:32 +0000 http://www.sequence-inc.com/fraudfiles/?p=2800#comment-166828 That's wishful thinking at work. This has been a theme for a while that OSTK was built out to service a certain volume of business and can continue on with a lower volume than that without replacing a lot of equipment. So even when capex is greater than depreciation, they have been talking about it being lower for so long, they just can't see it. It turns out that stuff really does need to get replaced about the time it's depreciated. The IT industry especially has ways of making you buy new stuff as soon as the old stuff is written off. That’s wishful thinking at work. This has been a theme for a while that OSTK was built out to service a certain volume of business and can continue on with a lower volume than that without replacing a lot of equipment. So even when capex is greater than depreciation, they have been talking about it being lower for so long, they just can’t see it. It turns out that stuff really does need to get replaced about the time it’s depreciated. The IT industry especially has ways of making you buy new stuff as soon as the old stuff is written off.

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