Confirmed: Overstock.com Is Doomed

Discussion in 'Wall St. News' started by Free Thinker, Mar 15, 2012.

  1. makes me wonder. what ever happened to the guy that used to shill for patrick byrne and ostk on et. i think his nick was flytiger or something.



    http://goingconcern.com/post/confirmed-overstockcom-doomed
    Tony Catanach and Ed Ketz, jumped on the pile. They've been listening to all these haters and thought it was about time they did some digging, so Tony and Ed ran some numbers (duh) and - YEP! - the company is pretty much doomed:

    The Z-score interpretation is straight-forward [Ed. note: check out their post for the complete formula]. If Z is greater than 2.60, then the firm has little financial distress and is healthy. The model predicts this firm will not fail. A Z-score between 1.10 and 2.60 is in the grey zone; it is indeterminate whether the firm will fail or not fail. The analyst should garner additional evidence to make this assessment. But, if the Z-score falls below 1.10, the model predicts corporate failure. And the lower the Z-score, the greater the amount of financial distress.

    For Overstock, the metric has these values:

    Year Z-Score
    2006 -9.4
    2007 -7.0
    2008 -6.8
    2009 -2.6
    2010 -3.1
    2011 -7.3
     
  2. And CRM and AMZN, etc..., timing is everything.

    AMZN is pulling the equivalent of WCOM purchase-accounting with these hardware rollouts. They can't live on these 1% net margins so they're constantly pushing perception with the next "disruptive" technology that ain't so disruptive.

    CRM is just an outright scam.