Overstock.com: Great place to shop but tough investment
Submitted by Frank Lara Jr on Mon, 12/01/2008 - 13:23.
Its Cyber Monday and you would think all the excitement would be present in Overstock.com's (NASDAQ:OSTK) stock price, that's not the case, shares are already down 10% to $9.43
The analysts aren't expecting much from online sales this year, thus the grim reaction to OSTK shares, the consensus is that Cyber Monday will match and not exceed sales from last year.
But Overstock.com shares are always subject to volatility, thanks to a 14.8% short float and challenging financials, there are good days to owning OSTK and bad days.
Overstock.com (OSTK) Financials (In millions of USD)
| Income Statement | Quarterly (Sep '08) |
Annual (2007) |
Annual (2006) |
| Total Revenue | 186.85 | 765.90 | 780.14 |
| Gross Profit | 32.12 | 124.55 | 89.80 |
| Operating Income | -4.25 | -44.62 | -98.76 |
| Net Income | -1.59 | -48.04 | -106.76 |
| Balance Sheet | |||
| Total Current Assets | 113.51 | 196.90 | 188.30 |
| Total Assets | 145.46 | 231.14 | 264.45 |
| Total Current Liabilities | 80.02 | 134.27 | 128.82 |
| Total Liabilities | 149.14 | 212.93 | 208.09 |
| Total Equity | -3.68 | 18.21 | 56.37 |
| Cash Flow | |||
| Net Income/Starting Line | -1.59 | -48.04 | -106.76 |
| Cash from Operating Activities | -0.27 | 10.03 | -25.73 |
| Cash from Investing Activities | -5.45 | -33.57 | 32.80 |
| Cash from Financing Activities | -7.46 | -2.03 | 63.98 |
| Net Change in Cash | -13.15 | -25.57 | 71.09 |
But shopping on Overstock.com is a different story, they are one of the most popular websites in the world and in the top five for online shopping, take today's deals:
Overstock.com has a slew of Cyber Monday deals for shoppers who didn’t get enough on Friday. One of the most interesting offers is an additional 15% back on purchases made with PayPal to the buyers PayPal account. The site is also offering free shipping on everything on the site.
In addition to those offers, the site is offering tons of other items on sale and shows to have Nintendo Wii consoles available for $249.99. Another nice product is a Memorex 1080p Blu-ray player for $169. Digital cameras are 10% off and Blu-ray movies start at $8.54.
The only catch to the deals is that free shipping isn’t valid on orders of only books, movies, and games. There are some nice deals on HDTVs cooking as well with a refurb Vizio 32-inch LCD HDTV for $479.99. Couple that with free shipping and the cheap Blu-ray player available and you can have a HD hometheater for under $600.
Today, every stock is down, but once Cyber Monday sales figured are reported, consider what may happen with OSTK shares.
The stock price could go lower, but even if there is any sign of hope or good sales numbers, OSTK shares could move higher.
Overstock.com has often seemed to focus more on its crusade against naked short-selling than on its actual business and it is a risk to buy on faith today. But again, should they beat current analysts, its on, and if they don't -- new 52-week low.
Disclaimer: No positions in any of the securities mentioned in this publication.
- Login to post comments
Email this page
Thanks for visiting WallStNation.com, to assist your investing research try using our Search (click to access) or review the list of Tickers (click to access) that link directly to articles related to the given stock/security.
Daily Market Summary
Please Review the WallStNation.com Disclaimer and remember that information provided by our site is at the investor's sole financial risk. Please Review for more Details
Please download or enable Adobe Flash to see CitiFX Pro's currency rates widget.
Trade Forex with CitiFX Pro
