Overstock.com (OSTK) CEO Patrick Byrne dissappointed the market with news of the company's fourth quarter results. According to its press release:
"We've had a nice holiday season, just not as nice a season as we've had in the past or as I'd hoped for," said Byrne. "We have become the go-to shop for smart, savvy shoppers interested in high quality products at discount prices, and I made the determination that this holiday season would be critical for solidifying our brand in our customers' eyes. To get above the noise, we spent a few dollars more than we had hoped, but in my experience, over time, those dollars will pay large dividends. So I decided to do what is smart for the company in the long run, rather than focus on just the quarter's results -- because I plan to be around next season as well, and to be bigger than ever."
Yeah, yeah, whatever. The press release contains more information about the lawsuit, for those that are interested. My own simple thoughts are that this company and its stock are in trouble—maybe not today, but soon.
In terms of disclosure, I have no positions in OSTK, either in stock or options.
Update:
You should also read Jeff Matthews's article A Necessary Correction.
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