Overstock.com’s “Unusual” Financial Statements and Disclosures

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Supporters of Patrick Byrne and Overstock.com (NASDAQ:OSTK) can’t seem to get over the fact that the company has never turned a profit and that it is being investigated by the SEC (despite false assertions in the most recent conference call that the SEC has resolved “all the issues” and has sprinkled holy water on the company) and that there are numerous “unusual” disclosures and elements in the financial statements.

I thought it would be fun to take a trip down memory lane regarding all these unusual, irregular, questionable, problematic, abnormal, odd items and see if a pattern emerges.

While under the watchful eye of the Sith Lord, I have generated quite a few blog posts regarding Patrick Bryne and Overstock.com. Isn’t it amazing how one, solitary public company can have situation after situation that indicates something is wrong with the financial data and disclosures? Continue reading

About the SEC “sprinkling holy water” on Overstock.com

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Wacky Patty ByrneLast week in the Overstock.com (NASDAQ:OSTK) earnings conference call, the company’s executives had the following to say about the SEC’s investigation of the company:

Patrick Byrne

So, is it fair to say that all these other issues that the knuckleheads keep on raising as issues, the SEC examiners, looked at and sprinkled holy water on?

David Chidester

Yeah, I mean they took a deep dive they do that every three years or so. And again they are very good to work with. It is not adversarial at all and we’ve got all the issues resolved and it’s nice to know that we could move forward.

Those statements by Patrick Byrne and David Chidester were a big no-no, for two main reasons. Continue reading