Author Topic: OSTK - Overstock.com  (Read 144411 times)

CONeal

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Re: OSTK - Overstock.com
« Reply #180 on: April 04, 2012, 09:21:31 PM »

The most important reason for staying away though is sales tax on purchases over the Internet.  This will probably cause a major shift in consumer behavior since most purchases are done to avoid the tax.  If a bill is not passed pretty soon allowing for a federal tax to be charged, some states will prusue it on their own.  If this occurs how will it affect businesses and also the valuations paid in takeovers.


You think there will be a shift in U.S. Internet consumer behavior or specifically in OSTK customer behavior? Also curious what data you used to come to the conclusion that sales tax avoidance is the driver.

I think a shift is coming for the Internet in general if/when this goes into affect, Calif starts charging Amazon in Sept if Federal tax is not passed by then. 

I can't provide hard data, just from watching friends buying habits how they preach buying stuff online to avoid the tax.


valueInv

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Re: OSTK - Overstock.com
« Reply #181 on: April 04, 2012, 11:34:07 PM »

The most important reason for staying away though is sales tax on purchases over the Internet.  This will probably cause a major shift in consumer behavior since most purchases are done to avoid the tax.  If a bill is not passed pretty soon allowing for a federal tax to be charged, some states will prusue it on their own.  If this occurs how will it affect businesses and also the valuations paid in takeovers.


You think there will be a shift in U.S. Internet consumer behavior or specifically in OSTK customer behavior? Also curious what data you used to come to the conclusion that sales tax avoidance is the driver.

I think a shift is coming for the Internet in general if/when this goes into affect, Calif starts charging Amazon in Sept if Federal tax is not passed by then. 

I can't provide hard data, just from watching friends buying habits how they preach buying stuff online to avoid the tax.

There are a lot of factors driving online buying other than sales tax avoidance:
 - Convenience:  You don't have to drive an hour each way. find parking, lose half your day. etc
 - Selection and long tail: There are a lot of items that you can find online that you cannot find locally. Where can you find a store with Amazon's selection?
 - Information: You can research and compare items online in ways that are not simply possible offline.

I don't expect buyer behavior to change much but margins may narrow a bit.

CONeal

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Re: OSTK - Overstock.com
« Reply #182 on: April 05, 2012, 07:47:59 AM »
ValueInv,

Your right there are convience and other factors at play also.  I'm not saying that online purchases will disappear althougher.  I'm saying the 7% discount (sales tax) that factors into decisions to buy online will be gone.  This drives a certain % of online sales. (What % I don't know)

Convience works both ways.  When you have to sign for a package that was purchased online its also a hassle for timing the FedEx guy and getting off work.

beerbaron

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Re: OSTK - Overstock.com
« Reply #183 on: April 05, 2012, 03:13:38 PM »
Convience works both ways.  When you have to sign for a package that was purchased online its also a hassle for timing the FedEx guy and getting off work.

Just ship to your work instead. It's the most wonderfull thing in the world to break a crappy day by the good feeling of receiving your new toy :)

BeerBaron

hellsten

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Re: OSTK - Overstock.com
« Reply #184 on: April 15, 2012, 03:09:07 PM »
Here's a link to the latest attack on Overstock and Patrick Byrne, this time by an amateur boxer and bouncer:
http://dagblog.com/business/overstockcom-ceo-patrick-byrne-palling-around-terrorists-13567

The article is not interesting in itself, but it led me to this article from 2005:
http://money.cnn.com/magazines/fortune/fortune_archive/2005/11/14/8360711/index.htm

Interesting to see that no other than Michael Burry and Scion Capital were interested in Overstock. In June 30, 2005, Michael Burry owned 6.95% of Overstock, or almost 19 million shares:
http://www.sec.gov/Archives/edgar/data/1130713/000092299605000099/scion_13g-overstock.htm

In September 2007 he held only 250 000 shares:
http://www.sec.gov/Archives/edgar/data/1182422/000108514607001105/scio3q07.txt

Would be interesting to hear Michael Burry's thoughts about Overstock then, and now.

Eric50

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Re: OSTK - Overstock.com
« Reply #185 on: April 15, 2012, 11:51:22 PM »
YOY unique visitors down 9.6% in March....

http://siteanalytics.compete.com/overstock.com/

Hester

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Re: OSTK - Overstock.com
« Reply #186 on: April 16, 2012, 08:13:25 AM »

stahleyp

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Re: OSTK - Overstock.com
« Reply #187 on: April 16, 2012, 10:02:33 AM »
Doesn't that include the deals OSTK had with living social and things too?
Paul

Parsad

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Re: OSTK - Overstock.com
« Reply #188 on: April 19, 2012, 07:20:47 AM »
1st Q report out:

http://finance.yahoo.com/news/overstock-com-returns-1st-quarter-141104770.html

Good progress on cost cutting.  As I said before...absolutely no reason why this company cannot be profitable on an annual basis. 

Need to push fulfillment business, rather than direct business.  With continued cost cutting, improved merchandising and marketing, revenues and profits should increase.  Cheers!
No man is a failure who has friends!

lessthaniv

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Re: OSTK - Overstock.com
« Reply #189 on: April 19, 2012, 07:34:21 AM »
 
1st Q report out:

http://finance.yahoo.com/news/overstock-com-returns-1st-quarter-141104770.html

Good progress on cost cutting.  As I said before...absolutely no reason why this company cannot be profitable on an annual basis. 

Need to push fulfillment business, rather than direct business.  With continued cost cutting, improved merchandising and marketing, revenues and profits should increase.  Cheers!

 ;D
<IV