Overstock Plans on Breaking Even for the Rest of the Year, Also Plans to Keep Talking Shit About Bloggers



After an "amazing" first quarter (using financial statements that cannot be relied upon, according to Overstock's current auditors at KPMG), Overstock is cooling the pumping and warning investors that a break-even couple of quarters may be ahead. For those of you unfamiliar with financial fraud in action, this means that the company is entirely unwilling (or unable) to pump all year round, as manipulation can be pretty difficult to sustain throughout the year.

Salt Lake City Tribune (known Overstock hack publication lacking the journalistic balls to tell the real story behind OSTK):

Overstock.com's chief executive Patrick Byrne, who earlier this week said the company had a strong first-quarter profit, isn't expecting any kind of similar performance during the second and third quarters of its current fiscal year.

Rather, Byrne anticipates the online discount retailer will just break even during the next two quarters -- and he isn't too concerned.

"If we can break even through September then we can then go on to make tens of millions of dollars during the fourth quarter," Byrne said, pointing to Overstock.com's busiest time of the year.

For the first quarter of its 2010 fiscal year, Overstock.com reported net income of $3.7 million, or 16 cents per share. A year ago, Overstock.com reported a first-quarter loss of $4 million, or 17 cents per share.

Revenue grew to $264.3 million, a 42 percent gain over the same period a year ago when the online discount retailer recorded sales of $185.7 million.

"My over-arching comment [on the first quarter] is yippee-ki-yay," Byrne said on Thursday during a conference call with securities analysts and investors.

The profit that Overstock.com posted for the first quarter of 2010 followed a report by the company just a week ago that it also had turned a profit for both its fourth quarter and 2009 fiscal year.

Those results marked the first time in the company's history that it put together two profitable quarters in a row.

But some bloggers, who are critical of the company and Byrne, question the quality of Overstock.com's first-quarter earnings, contending that the company's $3.7 million profit was aided by a $3.1 million reduction in its estimated allowance for product returns.

But Byrne said that view is jibberish.

"It ignores our improving operations," he said. "It ignores the huge increase in sales that we reported."

Again, why blame the bloggers, Patrick? Ask your own auditors (the third set Overstock has burned through in a year) why they expressed an opinion on your crap financials before you go pointing fingers at us. We're just standing here popping the corn, bitch. Want some?

In a related note, OSTK was barely touched in yesterday's market melee. Go figure.

Still don't believe me? Patrick Byrne's noisy, potty-mouthed BFF Sam E. Antar can tell you more:

A close examination of Overstock.com's (NASDAQ: OSTK) Q1 2010 10-Q report financial disclosures reveals that the company still failed to remediate serious material weaknesses in internal controls that have resulted in three restatements of financial reports in four years to correct GAAP violations. In addition, a close examination of the company's financial disclosures reveals serious questions about the quality of its reported Q1 2010 earnings of $3.7 million and claimed improvement in financial performance when compared to Q1 2009.

Oh, sorry, Sam's a blogger (and a criminal) so he must be full of shit too, right? How about when the criticism comes from author and journalist Gary Weiss? Is that still blabbering bullshit?

GW:

According to the company's latest quarterly report, the long-pending SEC investigation of these very issues is continuing. The issue before our securities watchdog is one of intent. There is now no doubt that Overstock has systematically cooked its books. The company admits to that. The question is whether the SEC will swallow Overstock's malarkey that it threw its financial statements into the stew pot strictly by accident.

Hey, that makes sense. Most fraud is an accident, right? At least it is, according to the fraudsters.

That defense is even sillier than usual, because it's a matter of record that Overstock CEO Patrick Byrne was repeatedly warned of those very accounting issues by Sam Antar -- and that Byrne responded by stalking, smearing and harassing Antar.

It remains to be seen whether the SEC will let itself be sold the Brooklyn Bridge by the con men at Overstock. Stay tuned.

The only journalists Patrick Byrne has "respect" for are the ones (like the Salt Lake City Tribune) who will happily push his bullshit. In the meantime, Sam, Gary, myself and others will just as happily continue to call him and Overstock out on their bullshit. Too bad the SEC doesn't seem to want to take the same path when it comes to this obvious fraud.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

4 comments:

beebsblog said...

Maybe it's just me, but aren't auditors supposed to detail where the company came up short, or do they just enter a qualified opinion that the company is unsat?

It would be better to know the details.

beebs
Just a chemist.

Theo Cowan said...

Thanks for pointing out Overstock.com's fluff. Those guys should be in jail. You should check out another Utah company (also friends with Byrne) committing massive investor fraud that nobody seems to notice: NextFit NXTZE (formerly NXTZ)

Beebs,

KPMG did, sort of, in saying Overstock had weak internal controls. Anything beyond that would have been a violation of auditor/auditee privilege and that's not what Overstock is paying them for ifyagetwhati'msayinhomie

JDA
Just a writer

Theo,

Thanks. I checked out NextFit... it appears to be MLM, which is almost always a fraud one way or another.

Tracy Coenen has covered companies like NextFit several times, check some of her stuff out if you are into uncovering these kinds of scams.

AG