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OSTK ceo
- Thread starter SWScapital
- Start date
negativity is overdone $92 in 2010 financial statements of Overstock tell an impressive story remarkable is that this robust revenue growth --- soon to be over $1 billion per year --- has been accomplished using a minimal amount of capital.
Overstock has used a tiny fraction of the capital that Amazon used, to build a comparable amount of business. Overstock is much more capital efficient than Amazon. That is reflected in Overstock's balance sheet, which is in vastly better shape than the balance sheet of Amazon at a comparable point in its history.
I thought this was pretty impressive, but youhave me convinced I am wrong again.
Let's see if we can come up with some other stuff to help us all get the facts right. See you soon.
Overstock has used a tiny fraction of the capital that Amazon used, to build a comparable amount of business. Overstock is much more capital efficient than Amazon. That is reflected in Overstock's balance sheet, which is in vastly better shape than the balance sheet of Amazon at a comparable point in its history.
I thought this was pretty impressive, but youhave me convinced I am wrong again.
Let's see if we can come up with some other stuff to help us all get the facts right. See you soon.
What do you guys think of the following -seems like the ultimate short squeeze about to happen?
LoftWerks Announcement: Merger With Consultech (Sulja Bros.) Continues and Shareholder Distribution Disclosures as Requested by Pending LFWK Ownership
Thursday March 9, 1:15 pm ET
NASHVILLE, TN--(MARKET WIRE)--Mar 9, 2006 -- LoftWerks, Inc. (Other OTC:LFWK.PK - News) today announced that its merger with Consultech Construction Management, Inc. and particularly, its subsidiary, Sulja Bros. Building Supplies, LTD., the primary distribution arm of Consultech's midwest operations, has set an initial timeline of 30 days to completion. The move solidifies the certainty of Consultech's imminent migration into the LFWK public vehicle. Sulja Brothers will serve as the centralized and primary distributor of materials for all future projects. A twenty-four year old business, Sulja Bros. has achieved steadily increasing revenues since its inception that now average over $30M annually. The company currently has assets totaling more than $25M. It is projected that once Sulja Bros. settles into its new role, revenues could top out at the $200M+ within twenty-four months. The increased inventory alone could place the company's assets at over $125M.
Also, LFWK disclosed its share distribution; a request by Consultech aimed at providing shareholders as complete a disclosure as possible prior to finalizing the LFWK vehicle takeover. The shareholder ownership as described is as follows:
-- 500,000,000 authorized
-- 100,000,000 control block held by Ammerman
-- 200,000,000 in Treasury earmarked for Consultech ownership during and
after takeover
-- 50,000,000 in certificate form, owned by enumerated insiders and NOT
TRADING.
-- An additional 78,000,000 owned in various certificate and electronic
form that is also held by LFWK insiders and accounted for as not currently
trading.
-- Leaving approximately 72,000,000 free-trading shares in the public
float (50M of which can be accounted for by LFWK management as issued to
non-insiders).
ADVERTISEMENT
A spokesperson for Consultech Construction Management concurred with this tabulation and stated that it was an accurate and reasonable reflection of LFWK current share structure.
LoftWerks Announcement: Merger With Consultech (Sulja Bros.) Continues and Shareholder Distribution Disclosures as Requested by Pending LFWK Ownership
Thursday March 9, 1:15 pm ET
NASHVILLE, TN--(MARKET WIRE)--Mar 9, 2006 -- LoftWerks, Inc. (Other OTC:LFWK.PK - News) today announced that its merger with Consultech Construction Management, Inc. and particularly, its subsidiary, Sulja Bros. Building Supplies, LTD., the primary distribution arm of Consultech's midwest operations, has set an initial timeline of 30 days to completion. The move solidifies the certainty of Consultech's imminent migration into the LFWK public vehicle. Sulja Brothers will serve as the centralized and primary distributor of materials for all future projects. A twenty-four year old business, Sulja Bros. has achieved steadily increasing revenues since its inception that now average over $30M annually. The company currently has assets totaling more than $25M. It is projected that once Sulja Bros. settles into its new role, revenues could top out at the $200M+ within twenty-four months. The increased inventory alone could place the company's assets at over $125M.
Also, LFWK disclosed its share distribution; a request by Consultech aimed at providing shareholders as complete a disclosure as possible prior to finalizing the LFWK vehicle takeover. The shareholder ownership as described is as follows:
-- 500,000,000 authorized
-- 100,000,000 control block held by Ammerman
-- 200,000,000 in Treasury earmarked for Consultech ownership during and
after takeover
-- 50,000,000 in certificate form, owned by enumerated insiders and NOT
TRADING.
-- An additional 78,000,000 owned in various certificate and electronic
form that is also held by LFWK insiders and accounted for as not currently
trading.
-- Leaving approximately 72,000,000 free-trading shares in the public
float (50M of which can be accounted for by LFWK management as issued to
non-insiders).
ADVERTISEMENT
A spokesperson for Consultech Construction Management concurred with this tabulation and stated that it was an accurate and reasonable reflection of LFWK current share structure.
and a follow up =looks like the company means what it wrote?
LoftWerks, Inc. Contemplates Regular Dividends
Monday March 13, 1:02 pm ET
NASHVILLE, TN--(MARKET WIRE)--Mar 13, 2006 -- LoftWerks (Other OTC:LFWK.PK - News) CEO Dennis Ammerman and a Consultech company representative are currently reviewing a plan to issue regular dividends to stockholders.
ADVERTISEMENT
The plan calls for a regular quarterly dividend of $0.0025. The 300 million shares represented by Consultech and LFWK CEO Dennis Ammerman will return the dividend to the company's Operations Accounts. Two Insiders that represent 86 million shares have agreed to return the dividend to the company as well.
CEO Dennis Ammerman announced today, "The dividend is being designed to minimize effects to company profits yet incur maximum damage to the short position in our stock. Consultech and Company Insiders understand that the money spent on the dividend is necessary to achieve a reasonable fair market share evaluation for all stockholders." Two insiders, representing more than 86M shares have already agreed to return the dividend to the company. The total share count enumerated for the dividend return to LFWK operations, and subsequently Consultech, is 386M shares of the 500M Authorized.
The remaining 114 million shares will receive a $0.0025 per share dividend. LFWK estimates an equal number of short shares that will also receive the dividend. Ammerman stated, "So far, it looks like a matching dividend program from the short sellers. Every dollar the company issues, in dividend form will be matched by the short sellers. If the short sellers refuse to pay the dividend, their identity will be revealed in the 'payment in-lieu paperwork.'"
LFWK expects that the efficiencies introduced by Sulja Bros. Building Supplies' new role as exclusive supplier will pay for the dividend. Ammerman commented: "The savings from removing a middle-man supplier by using Sulja Brothers as the exclusive materials source directly and positively affects the LoftWerks bottom line. After the merger, this margin will still be realized by the company. Redirecting new profit to shareholder dividends is, in essence, another wash. The dividend plan serves but to increase shareholder value."
LoftWerks, Inc. Contemplates Regular Dividends
Monday March 13, 1:02 pm ET
NASHVILLE, TN--(MARKET WIRE)--Mar 13, 2006 -- LoftWerks (Other OTC:LFWK.PK - News) CEO Dennis Ammerman and a Consultech company representative are currently reviewing a plan to issue regular dividends to stockholders.
ADVERTISEMENT
The plan calls for a regular quarterly dividend of $0.0025. The 300 million shares represented by Consultech and LFWK CEO Dennis Ammerman will return the dividend to the company's Operations Accounts. Two Insiders that represent 86 million shares have agreed to return the dividend to the company as well.
CEO Dennis Ammerman announced today, "The dividend is being designed to minimize effects to company profits yet incur maximum damage to the short position in our stock. Consultech and Company Insiders understand that the money spent on the dividend is necessary to achieve a reasonable fair market share evaluation for all stockholders." Two insiders, representing more than 86M shares have already agreed to return the dividend to the company. The total share count enumerated for the dividend return to LFWK operations, and subsequently Consultech, is 386M shares of the 500M Authorized.
The remaining 114 million shares will receive a $0.0025 per share dividend. LFWK estimates an equal number of short shares that will also receive the dividend. Ammerman stated, "So far, it looks like a matching dividend program from the short sellers. Every dollar the company issues, in dividend form will be matched by the short sellers. If the short sellers refuse to pay the dividend, their identity will be revealed in the 'payment in-lieu paperwork.'"
LFWK expects that the efficiencies introduced by Sulja Bros. Building Supplies' new role as exclusive supplier will pay for the dividend. Ammerman commented: "The savings from removing a middle-man supplier by using Sulja Brothers as the exclusive materials source directly and positively affects the LoftWerks bottom line. After the merger, this margin will still be realized by the company. Redirecting new profit to shareholder dividends is, in essence, another wash. The dividend plan serves but to increase shareholder value."
http://www.thestreet.com/p/rmoney/internet/10273256.html
Over the past year there has been an avalanche of negativity about Overstock (OSTK:Nasdaq - commentary - research - Cramer's Take). The company has been criticized for underperforming analyst expectations in 2005, and there has been a swirl of controversy surrounding Patrick Byrne, CEO of Overstock, and his legal battle over alleged front-running by certain hedge funds.
My review of the financial statements and operating history of Overstock indicates that the negativity is overdone. This is a severely undervalued company.
As I'll explain below, my minimum prospective value for Overstock shares is $92 in 2010; it currently trades at about $23.
Overstock's business is not complicated -- it's the online equivalent of an outlet mall. The excess inventory segment of the retail market is ideally suited for the Internet. Brand-name manufacturers can avoid the inefficiencies of supplying and staffing retail outlet stores by partnering with an online aggregator like Overstock.
Also, excess inventory levels are notoriously irregular and difficult for manufacturers to manage. They have to deal with unpredictable change in both the nominal level and across product categories. Using a single distribution partner, like Overstock, requires no capital outlay by manufacturers and results in fast conversion of excess inventory to cash.
Here's the key analytical point for this particular model: The online space that Overstock competes in is a winner-take-all category. Like with eBay (EBAY:Nasdaq - commentary - research - Cramer's Take) in the online auction space, there's a self-reinforcing dynamic at work here. Buyers naturally migrate to the inventory liquidation site that has the most product, and sellers want to sell on the site that has the most buyers. It's a mistake to underestimate the importance of this dynamic -- or its potential long-term value.
Financial Statements Paint the Picture
The financial statements of Overstock tell an impressive story. Annual revenue has grown from $92 million in 2002 to $239 million in 2003, to $494 million in 2004, and to $804 million last year. Most remarkable is that this robust revenue growth --- soon to be over $1 billion per year --- has been accomplished using a minimal amount of capital.
(more)
Look for shares of Overstock to perform quite well over the next several years. While Amazon's "trough" was at 0.75 times sales, Overstock's recent low represents a much heavier discount, at less than 0.50 times sales. (Market cap of $440 million divided by $900 million in current year sales.) Using one times sales as a conservative metric, my calculations indicate that Overstock will be worth $92 per share by 2010.
Over the past year there has been an avalanche of negativity about Overstock (OSTK:Nasdaq - commentary - research - Cramer's Take). The company has been criticized for underperforming analyst expectations in 2005, and there has been a swirl of controversy surrounding Patrick Byrne, CEO of Overstock, and his legal battle over alleged front-running by certain hedge funds.
My review of the financial statements and operating history of Overstock indicates that the negativity is overdone. This is a severely undervalued company.
As I'll explain below, my minimum prospective value for Overstock shares is $92 in 2010; it currently trades at about $23.
Overstock's business is not complicated -- it's the online equivalent of an outlet mall. The excess inventory segment of the retail market is ideally suited for the Internet. Brand-name manufacturers can avoid the inefficiencies of supplying and staffing retail outlet stores by partnering with an online aggregator like Overstock.
Also, excess inventory levels are notoriously irregular and difficult for manufacturers to manage. They have to deal with unpredictable change in both the nominal level and across product categories. Using a single distribution partner, like Overstock, requires no capital outlay by manufacturers and results in fast conversion of excess inventory to cash.
Here's the key analytical point for this particular model: The online space that Overstock competes in is a winner-take-all category. Like with eBay (EBAY:Nasdaq - commentary - research - Cramer's Take) in the online auction space, there's a self-reinforcing dynamic at work here. Buyers naturally migrate to the inventory liquidation site that has the most product, and sellers want to sell on the site that has the most buyers. It's a mistake to underestimate the importance of this dynamic -- or its potential long-term value.
Financial Statements Paint the Picture
The financial statements of Overstock tell an impressive story. Annual revenue has grown from $92 million in 2002 to $239 million in 2003, to $494 million in 2004, and to $804 million last year. Most remarkable is that this robust revenue growth --- soon to be over $1 billion per year --- has been accomplished using a minimal amount of capital.
(more)
Look for shares of Overstock to perform quite well over the next several years. While Amazon's "trough" was at 0.75 times sales, Overstock's recent low represents a much heavier discount, at less than 0.50 times sales. (Market cap of $440 million divided by $900 million in current year sales.) Using one times sales as a conservative metric, my calculations indicate that Overstock will be worth $92 per share by 2010.
Quote from flytiger:
I thought this was pretty impressive, but youhave me convinced I am wrong again.
Let's see if we can come up with some other stuff to help us all get the facts right. See you soon.
You were the one proclaiming that by March 10th I would be admitting that you were right about this whole thread. But you didn't even post on March 10th. So whatever dude. Your credibility is zero.
About the $92 price target by someone at TheStreet, is that all that you've got? Does that one analyst target justify this whole thread?
if the board were to fire byrne this stock could really take off. i wonder if that could happen?