{"id":17873,"date":"2017-11-06T06:00:51","date_gmt":"2017-11-06T12:00:51","guid":{"rendered":"http:\/\/www.sequenceinc.com\/fraudfiles\/?p=17873"},"modified":"2017-11-03T21:13:34","modified_gmt":"2017-11-04T02:13:34","slug":"overstock-com-report-on-thestreetsweeper","status":"publish","type":"post","link":"https:\/\/www.sequenceinc.com\/fraudfiles\/overstock-com-report-on-thestreetsweeper\/","title":{"rendered":"Overstock.com Report on TheStreetSweeper"},"content":{"rendered":"<p><a href=\"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-content\/uploads\/2017\/11\/overstock.png\"><img decoding=\"async\" class=\"lazyload alignright wp-image-17885\" src=\"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-content\/uploads\/2017\/11\/overstock.png\" data-orig-src=\"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-content\/uploads\/2017\/11\/overstock.png\" alt=\"\" width=\"308\" height=\"74\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27308%27%20height%3D%2774%27%20viewBox%3D%270%200%20308%2074%27%3E%3Crect%20width%3D%27308%27%20height%3D%2774%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-content\/uploads\/2017\/11\/overstock-300x72.png 300w, https:\/\/www.sequenceinc.com\/fraudfiles\/wp-content\/uploads\/2017\/11\/overstock.png 458w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 308px) 100vw, 308px\" \/><\/a>TheStreetSweeper, a site investigates and reports on public companies, <a href=\"http:\/\/www.thestreetsweeper.org\/undersurveillance.html\">released a report last week on Overstock.com<\/a>. The article, called &#8220;Under Surveillance,&#8221; said that the company&#8217;s stock is massively overvalued. The stock price shot up when Overstock jumped on the cryptocurrency bandwagon:<\/p>\n<blockquote><p>Overstock\u2019s crypto-fueled stock surge began in August, after the online retailer began allowing shoppers to pay with bitcoin and other digital tokens.<\/p>\n<p>In September, the company announced plans for an exchange to trade tokens.<\/p>\n<p>In October, the CEO announced a subsidiary, tZero, intends to hold an <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1130713\/000113071317000045\/pressreleasetzeroico.htm\">ICO<\/a> \u2013 initial coin offering \u2013 from Nov. 15 until Dec. 31. Rather than shares of stock, digital tokens would be issued in the private placement.<\/p><\/blockquote>\n<p><!--more--><\/p>\n<p>After hovering around the $16 and $17 range for months, Overstock&#8217;s stock price started climbing rapidly. Since August, it has gone from around $19 to more than $44 per share. Why did the stock price climb so fast? It was a massive short squeeze. StreetSweeper says the short squeeze is over and the stock price should drop around 30%.<\/p>\n<p>There are plenty of problems with cryptocurrency, so it&#8217;s not going to save Overstock. Particularly when the company&#8217;s operating results are terrible, according to StreetSweeper:<\/p>\n<ul>\n<li>Overstock is unprofitable. It <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1130713\/000113071317000040\/ostk-20170630x10q.htm\">lost $14 million<\/a> the first half of this year.<\/li>\n<li>The price-to-cash flow &#8211; 739 times cash \u2013 is ridiculously high.<\/li>\n<li>Today\u2019s price is ~$15 over analysts\u2019 average 12-month price target of $30.50\u2026 Implying about a 34% downside.<\/li>\n<li>Overstock\u2019s gross margin \u2013 19% &#8211; is worse than 81% of its peers.<\/li>\n<li>The company\u2019s growth rate seriously lags behind rivals\u2019<\/li>\n<\/ul>\n<p>It is all amusing to me because in 2008, I <a href=\"https:\/\/www.sequenceinc.com\/fraudfiles\/?s=overstock\">regularly mocked Overstock.com<\/a> and Patrick Byrne on this blog because of their shady accounting, but the real heavy lifting in <a href=\"https:\/\/whitecollarfraud.com\/overstock-com-accounting-fraud\/\">uncovering their financial statement fraud was done by Sam Antar<\/a>. Do I think the company has changed its ways? Of course not. If their numbers look pathetic as reported, I can only imagine what we&#8217;d find if we spent some time digging into them.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TheStreetSweeper, a site investigates and reports on public companies, released a report last week on Overstock.com. The article, called &#8220;Under Surveillance,&#8221; said that the company&#8217;s stock is massively overvalued. The stock price shot up when Overstock jumped on the cryptocurrency [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[827],"tags":[915,188,2907],"class_list":["post-17873","post","type-post","status-publish","format-standard","hentry","category-public-companies","tag-overstock","tag-patrick-byrne","tag-streetsweeper"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p6Z0e-4Eh","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/17873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/comments?post=17873"}],"version-history":[{"count":0,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/17873\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/media?parent=17873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/categories?post=17873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/tags?post=17873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}