Author Topic: OSTK - Overstock.com  (Read 132099 times)

ValueCarl

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Re: OSTK - Overstock.com
« Reply #100 on: March 07, 2012, 08:32:42 PM »
I recommended Facebook do this just today, but only on GOLDMAN's LIFE, however!

http://en.wikipedia.org/wiki/Patrick_M._Byrne

"Dutch Auction" IPO
Byrne initiated a Dutch auction IPO of Overstock.com in 2002. The company was one of the first to go public under a system advanced by WR Hambrecht + Co to retain a greater share of capital within the company rather than going to the investment bank underwriters used in conventional public offerings. Byrne has said that competing banks reacted against this, attempting to obstruct the success of the offering through negative reports and by shorting the company's stock.[19] When Google later in 2004 went public via a Dutch auction IPO, Byrne commented that Wall Street firms similarly pushed negative stories, but did not keep it from going forward successfully.[20] Four years after the OpenIPO, one official of Hambrecht, its now former co-CEO Clay Corbus was added to Overstock's board of directors.[21]


Parsad

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Re: OSTK - Overstock.com
« Reply #101 on: March 07, 2012, 11:50:52 PM »
what is this about?

"Overstock.com CEO Patrick Byrne had better timing than Francis Chou. Back on May 20 to May 24, 2010, Byrne's 100% controlled High Plains Investments LLC dumped 140,000 common shares at an average price of $22.11 per share and collected over $3 million in proceeds. "

I think like most CEO's, Byrne sells some shares annually and they are pointing out the fact that he sold at a good price.  Big deal!  If he sold a really big chuck of his shares, then it would be something to be concerned with.  He sold around 2%!

How is Dr. Byrne's father doing? I don't see him on the seven person board--just six--and I haven't located a PR where he left since re-arriving in 2010.

It's there, dig around.  He left the board as his health was not good.  Cheers!
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MrB

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Re: OSTK - Overstock.com
« Reply #102 on: March 08, 2012, 01:59:52 AM »
How is Dr. Byrne's father doing? I don't see him on the seven person board--just six--and I haven't located a PR where he left since re-arriving in 2010.

http://investors.overstock.com/phoenix.zhtml?c=131091&p=irol-newsArticle&ID=1560370&highlight=

http://www.overstock.com/leadership

What is not stated here for some odd reason,  is that Warren E. Buffett's involvement with Geico was triggered, initially, by Ben Graham's own darling position established in the 1940's as a core holding in his Investment Partnership before being taken to the stock market wood shed due to poor underwriting in the 70's. I am certain Buffett was involved with Geico before Jack Byrne was hired to spearhead the turnaround, and unfortunately, Graham who died in 1975, never lived to see the magic which included Buffett swallowing the whole enchilada as part of the Berkshire Empire today. It seems to me, this Wiki history should be updated by intimate parties with the will to do so.

ValueCarl,
Your comment above was a painful reminder of how I misunderstood the Geico deal for years; in particular the risk reward ratio that Buffett took on. I found Alice Schroeder's comments extremely helpful, assuming that she is correct in retelling the story of course. Anyway, it might be old news to you, but for me it was an eye opener. I did not get the following at all.
a) At what point of the "replacement process" of old management did Buffett invest?
b) How instrumental was Jack Byrne to Buffett's decision?
c) How did Buffett structure his "investment"?
d) What was Buffett's own assessment of the risk involved?

If you don't know the answers to the above and are interested then read p.430-438 of Snowball again; I found it fascinating.
If nothing else, you will appreciate the irony of the situation.

ValueCarl

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Re: OSTK - Overstock.com
« Reply #103 on: March 08, 2012, 06:22:41 AM »
MrB, much thanks and I would never discount Alice Schroeder's version of the stories contained in Warren E. Buffett's biography. To be truthful, I have only scanned "Snowball" without ever reading it cover to cover. My knowledge of The Graham tie ins, came from Janet Lowe readings.   

ValueCarl

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Re: OSTK - Overstock.com
« Reply #104 on: March 08, 2012, 07:02:13 AM »
More FUN for this FIGHTER, DR. Byrne!

http://www.4-traders.com/OVERSTOCK-COM-INC-10372/news/OVERSTOCK-COM-INC-Overstock-com-Announces-Court-Declines-to-Seal-Evidence-in-Goldman-Sachs-Merrill-L-14205152/


SALT LAKE CITY, March 8, 2012 /PRNewswire/ -- Overstock.com, (NASDAQ: OSTK) today announced that in its stock manipulation suit against Goldman Sachs and Merrill Lynch the court denied mostly all of defendants' motion to seal the evidentiary record on the summary judgment hearing. The ruling is significant because the evidence submitted to the court lays out in detail the means by which Goldman Sachs and Merrill Lynch used naked short selling, in concert with others, to manipulate downward Overstock.com's share price.

stahleyp

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Re: OSTK - Overstock.com
« Reply #105 on: March 08, 2012, 08:57:34 AM »
what is this about?

"Overstock.com CEO Patrick Byrne had better timing than Francis Chou. Back on May 20 to May 24, 2010, Byrne's 100% controlled High Plains Investments LLC dumped 140,000 common shares at an average price of $22.11 per share and collected over $3 million in proceeds. "

I think like most CEO's, Byrne sells some shares annually and they are pointing out the fact that he sold at a good price.  Big deal!  If he sold a really big chuck of his shares, then it would be something to be concerned with.  He sold around 2%!


As always, thanks for that Sanj!
Paul

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Re: OSTK - Overstock.com
« Reply #106 on: March 08, 2012, 09:17:50 AM »
ValueCarl,
Your comment above was a painful reminder of how I misunderstood the Geico deal for years; in particular the risk reward ratio that Buffett took on. I found Alice Schroeder's comments extremely helpful, assuming that she is correct in retelling the story of course. Anyway, it might be old news to you, but for me it was an eye opener. I did not get the following at all.
a) At what point of the "replacement process" of old management did Buffett invest?
b) How instrumental was Jack Byrne to Buffett's decision?
c) How did Buffett structure his "investment"?
d) What was Buffett's own assessment of the risk involved?

MrB, my Buffett books are already in boxes ready for the moving to a new apartment. Can you indulge me? Are this right? (I was preparing a post precisely on this, but it will have to wait hehehe)

a) Buffett interviewed the already CEO Jack Byrne in a hotel room . When Byrne received the first call from Buffett he did not know who he actually was and dismissed a possible meeting ... only to be pulled back by the ear by former CEO Davidson (the same that instructed a very young Buffett on the insurance business on a Saturday afternoon)
b) That interview was key to Buffett deciding to invest. "If they got the right person in to run it, I think he could turn it around". "He spoke like an owner as distinct from a manager or a bureaucrat."
c) First he took part of the reinsurance, paid a call to the DOI, and then he backstopped the capital raise organized by Solomon Brothers?
d) "This is risky. It could go completely out of business. But in insurance its very hard to get an edge, and they have an edge." Ive just invested in something that might go under. I could lose the entire investment next week.


Parsad

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Re: OSTK - Overstock.com
« Reply #107 on: March 08, 2012, 12:19:29 PM »
More FUN for this FIGHTER, DR. Byrne!

http://www.4-traders.com/OVERSTOCK-COM-INC-10372/news/OVERSTOCK-COM-INC-Overstock-com-Announces-Court-Declines-to-Seal-Evidence-in-Goldman-Sachs-Merrill-L-14205152/


SALT LAKE CITY, March 8, 2012 /PRNewswire/ -- Overstock.com, (NASDAQ: OSTK) today announced that in its stock manipulation suit against Goldman Sachs and Merrill Lynch the court denied mostly all of defendants' motion to seal the evidentiary record on the summary judgment hearing. The ruling is significant because the evidence submitted to the court lays out in detail the means by which Goldman Sachs and Merrill Lynch used naked short selling, in concert with others, to manipulate downward Overstock.com's share price.

I think that is a huge move in favor of Overstock.com, but me thinks legal costs are also not going to go down anytime soon as this thing goes to appeal and then trial now!  Cheers!
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alertmeipp

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Re: OSTK - Overstock.com
« Reply #108 on: March 08, 2012, 01:21:03 PM »
how much they can get if they win the case?

Parsad

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Re: OSTK - Overstock.com
« Reply #109 on: March 08, 2012, 02:02:30 PM »
how much they can get if they win the case?

Who knows!  Could be a few million to hundreds of million.  If you assume Zappos.com sold for $900M+ and they are saying their business was damaged by the manipulation and naked short selling of their business (whether it was or wasn't you can debate all you want), then that's a pretty substantial claim. 

If it goes to trial, I'm pretty sure Goldman and Merrill Lynch would want to settle...so they would probably offer a $20M settlement.  Which wouldn't even cover Overstock's legal expenses.  So more likely Overstock.com would not even entertain a settlement less than $40M plus legal costs...so around $65M or so.  But you never know...they could end up with $500M or they could even end up with zero!  Cheers!
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