{"id":2800,"date":"2008-11-03T13:13:58","date_gmt":"2008-11-03T19:13:58","guid":{"rendered":"http:\/\/www.sequence-inc.com\/fraudfiles\/?p=2800"},"modified":"2008-11-03T13:13:58","modified_gmt":"2008-11-03T19:13:58","slug":"gross-incompetence-at-overstockcom","status":"publish","type":"post","link":"https:\/\/www.sequenceinc.com\/fraudfiles\/gross-incompetence-at-overstockcom\/","title":{"rendered":"Gross incompetence at Overstock.com"},"content":{"rendered":"<p>Overstock.com (NASDAQ:OSTK) and its &#8220;colorful&#8221; CEO Patrick Byrne have a history of something&#8230;. At worst, it&#8217;s a history of <a href=\"http:\/\/www.sequence-inc.com\/fraudfiles\/2008\/04\/30\/overstockcoms-unusual-financial-statements-and-disclosures\/\">misleading investors<\/a> with false information, incomplete and inaccurate disclosures, and <a href=\"http:\/\/www.sequence-inc.com\/fraudfiles\/2008\/07\/18\/overstock-continues-to-mislead-investors-with-phony-ebitda-calculation\/\">phony accounting measures<\/a>. At best, it&#8217;s a history of <a href=\"http:\/\/www.sequence-inc.com\/fraudfiles\/2008\/07\/29\/if-patrick-byrne-leaves-overstockcom-what-excuse-will-the-company-have\/\">gross incompentence<\/a> that will <a href=\"http:\/\/www.sequence-inc.com\/fraudfiles\/2008\/07\/22\/overstockcoms-mounting-accumulated-losses\/\">never be overcome<\/a>.<\/p>\n<p><a href=\"http:\/\/whitecollarfraud.blogspot.com\/\">Sam Antar<\/a> points out an interesting inclusion in Overstock.com&#8217;s third quarter financials and earnings release.<!--more--><\/p>\n<p><a href=\"http:\/\/sec.gov\/Archives\/edgar\/data\/1130713\/000110465908065589\/a08-26812_1ex99d1.htm\">The company reports<\/a>:<\/p>\n<blockquote><p>We believe that, because our <strong>current capital expenditures are lower than our depreciation <\/strong>levels, discussing EBITDA at this stage of our business is useful to us and investors because it approximates cash used or cash generated by the operations of the business.<\/p><\/blockquote>\n<p>Yet the numbers were this:<\/p>\n<blockquote><p>Capital expenditures $8,809,000<br \/>\nDepreciation and amortization $5,580,000<\/p><\/blockquote>\n<p>As you can see, the capital expenditures are actually <strong>higher<\/strong> than depreciation, directly contradicting the verbiage in the 8-K. Did the auditors even bother to look at what was being reported to see if the discussion was in line with the reported numbers?<\/p>\n<p>Who cares about issues like this? <a href=\"http:\/\/garyweiss.blogspot.com\/2008\/07\/overstockcom-slaughter-proves-analysts.html\">Certainly not the SEC.<\/a> Probably not the investors who continue to hold long positions in Overstock.com stock. I&#8217;m just personally amused at the continued incompetence of the executives at Overstock. <a href=\"http:\/\/en.wikipedia.org\/wiki\/Naked_short_selling\"><\/a><\/p>\n<p><a href=\"http:\/\/en.wikipedia.org\/wiki\/Naked_short_selling\">Naked short selling<\/a> of stock isn&#8217;t killing Overstock.com. Completely inept management is.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overstock.com (NASDAQ:OSTK) and its &#8220;colorful&#8221; CEO Patrick Byrne have a history of something&#8230;. At worst, it&#8217;s a history of misleading investors with false information, incomplete and inaccurate disclosures, and phony accounting measures. At best, it&#8217;s a history of gross incompentence [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[],"class_list":["post-2800","post","type-post","status-publish","format-standard","hentry","category-fraud-news-stories"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p6Z0e-Ja","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/2800","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=2800"}],"version-history":[{"count":0,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/2800\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/media?parent=2800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/categories?post=2800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/tags?post=2800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}