Overstock Q4 and year end results

[CONeal]

 

 

http://finance.yahoo.com/news/Overstockcom-Reports-FY-and-prnews-2114981516.html?x=0&.v=1

[valuecfa]

Net Income came in a couple million lighter than i expected. Has anyone done research into what percentage of Overstock's revenues came from key word search engine clicks as opposed to direct overstock site shopping, via typing overstock.com into the search bar?

 

Their page rankings have declined dramatically in Google since the tactics they were using ceased. Used to be if you typed in any of the following words (furniture, watches, cookware, etc) they were number 1 on search rankings. Now, they don't even make the first 5 pages of Google. I really wonder how much this will effect them in future quarters. I have noticed a lot more television advertising over the past week, which i don't think is a coincidence.

 

-long ostk

[Parsad]

I think net income came in lighter due to retailers dropping prices towards the end of the 4th Q.  Patrick had said in an interview that they chose not to participate in that and their sales would come in lighter, but they were more profitable on a percentage basis.

 

I don't think the Google issue will be too bad.  It was a slap on the wrist by Google, punishment short-term and over time their rating will go up again.  Probably nowhere near the top, but also nowhere near where they've dropped to.  They'll just have to make sure their search engine optimization is from other sources, rather than some of the ones they were using.  Cheers!

[Parsad]

According to the webcast, they expect a 5% hit to revenues during the penalty period...anywhere from 2 weeks to 6 weeks probably.  The prime broker case is set for December 5, 2011 against Goldman Sachs, Merrill Lynch and Bank of America.  Cheers!