OSTK, $8/share (December 2011)

            ..."one share of stock is a slice all the way through the company"

Crew   →   Able, value oriented, creative (rowing hastily, at times). Bonus 2010: management nay it, other hands get it. Equity Options: nay, decent RSUs instead.

Ship   →   Faster & stronger than many. Leaks some red as of yet. Value driven crew works hard to overhaul, apt, better build. Good to see in place: 
    • critical mass (web-estate, trade relations, $1b revenue mark, technology); 
    • about 2.2 million quarterly orders @ $118/order (last 12 quarters average);
    • perpetually negative working capital; 
    • 5y average capex < 5y average depreciation;
    • ~$190/175 million in NOLs (federal/state)(Sep-2011);
    • value drivers - in plain sight + room for their employment: 
    • new growth engines - in test drive: pricelines, nooks;
    • private company style. Acumen of the pilot.
Guild →  Survival of the fittest rules on tight margins. Ours very, already quite a master of bargains in its own right, looks up from being a journeyman (serene sales & marketing spend aims at the top of the ladder). Yet, the guild's headmaster is bossy-bossy (books and merchandise ship in parcels, flooding all over, so to speak). No sign of wear & tear, or disruption of the online retail as a guild, despite state tax headwinds (US). 

Eye catchers ... some:
    • more domestic rather than truly global perspective
    • sore eyes management ...best in class? rose colored glasses?
    • groupthink or teamwork?
    • Californilitigatios.
Safety belt    Top quality, value type, controlling shareholders.  Value oriented management. Favorable reversion to the mean odds on price to sales ratios (PSR): x0.13 - x0.17 (Dec - 2011) vs. x0.74 and more for peers (PSR sector, industry).

Wild cards   →   Naked-short litigation proceeds. Bargain cherries following (overstocked?) shopping season. 

Website          →  Overstock (shortcut O.co)

Idea in depth  →  OSTK


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