Last week, Sam Antar exposed yet another set of accounting manipulations by Overstock.com (NASDAQ:OSTK) and CEO Patrick Byrne. Those who have carefully followed the Overstock saga are no doubt unsurprised at company’s use of a little accounting “presto chango” to make the fourth quarter of 2008 look better.
Had the company reported its financials properly for the year, the fourth quarter would have shown a loss of $800,000. With this bit of accounting magic, Overstock.com instead reports a profit of $1 million. Continue reading
Last 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:
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?
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
It’s official. The Sith Lord and I have concluded our meeting, and public companies in the United States will no longer be required to follow GAAP (Generally Accepted Accounting Principles). Instead, they will immediately begin following BOSS (Because Overstock Said So).
Many of you are not surprised by this change. With Patrick Byrne’s impressive ability to manipulate the accounting rules for the benefit of his company, Overstock.com (NASDAQ:OSTK), it only makes sense that we reward him by allowing him to make the accounting rules going forward. (He makes his own rules anyway, so what’s the difference?) Continue reading