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OSTK Q3 Results


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Guest hellsten

So far I'm very happy I backed up the truck on this one. OSTK's future is uncertain though. I won't cheer until I sell at a profit and figuring out when to sell is the difficult part with this one.


Short interest is dropping, but is still very high:



I'm going to let this winner run for a while longer.


Free cash flow totaled $15.7 million and $24.2 million for the twelve months ended September 30, 2012 and 2011, respectively. The $8.5 million decrease was due to a $3.1 million decrease in operating cash flows and a $5.4 million increase in capital expenditures. 


Net income/(loss) — Net income totaled $2.7 million and a loss of $(7.8 million) for Q3 2012 and 2011, respectively, an increase of $10.5 million. Earnings per share was $0.11 on a fully diluted basis in Q3 2012, compared to $(0.33) for Q3 2011.


Contribution in Q3 2012 and 2011 was $31.6 million and $24.6 million, respectively, a 29% increase. Contribution margin increased by 220 basis points to 12.4% from 10.2% for the same periods.
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Guest hellsten

Early 2012 my thesis was that OSTK:

- might experience a short squeeze

- has a good owner-manager

- will not go bankrupt

- will be profitable

- will grow


That Francis Chou owns OSTK and was buying more was icing on the cake. That the media was and is spreading various stories about Patrick Byrne and OSTK is a good thing. Less interest in OSTK means I get to buy it at a lower price.


The market seemed to disagree strongly with all of the above. So far the market has been proven wrong. I hope I'm right long-term.

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Are there hidden assets here?


Total assets here is about $130 million, equity is about $18 millon.


This company may be able to generate $-15$20 million in a good year.


Yet the company is selling for right now about $300 million.


I must be missing something very big here. please fill me in.


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