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Shorts Can Suck It! Overstock Reports $8M 2009 Profit!


Parsad
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And as we were discussing the other day on here, fullfilment and affiliate business revenue is going through the roof...pushing revenues up 27% in the 4th Q and net income was almost $13M or 55 cents a share in the quarter alone!  Crazy!  That line of business is where I always thought Overstock should be pushing, since margins are better there in most economic conditions and it isn't capital-intensive.  The direct business should be used only opportunistically when you can find really cheap inventory at ridiculous prices.  The lean years look like they are over at Overstock now as well!  Cheers! 

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I agree third party is the way to go. However, Overstock has never been very consistent historically. I've also traded successfully the stock a couple of times in the past. But frankly amazon was more scared of them a 5 or 6 years ago when they were growing faster. Since they have had an history of false starts, inconsistent growth and poor controls. I hope this is the right start - I think the business has a lot of potential with 3P and overstocks - there is clearly a niche for that, but I would like to see more growth and more consistent results over a longer period. As a comparison point, Amzn has tripled its revenue in 4 years (2005: $8.5bn, 2009: $24.5bn) vs +10% in 5 years for Ostk (2005:$800m; 2009: $877m). So, if I were Patrick Bryne, I would not brag too much :-)

 

Monday's call should be interesting. I remember thinking/reading that Patrick Byrne might not stay forever at the helm of Overstock. He might be pushing for growth and try to sell/exit in the next couple of years.

 

Eric

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good to see! patrick & overstock are ones i'll always keep a fond eye on....just dont have the confidence to invest long term. trading it in small doses, sometimes, maybe. but for all PB's brilliance, he seems to lack the discipline to build on small, measured incremental gains. during good times he seems to be prone to a swing for the fences optimism that then needs to be reversed with a sort of mea culpa retrenchment back to basic blocking & tackling...again & again.

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