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Showing posts from February, 2008 and Patrick Byrne: Phony Accounting and False and Misleading Disclosures - Revenues

In a previous blog post entitled, " and Patrick Byrne: Phony Accounting and False and Misleading Disclosures," I detailed how the Securities and Exchange Commission found that (NASDAQ: OSTK) had neglected to report its revenues in compliance with GAAP since its very first filings more than five years ago. In addition, in that blog post and two other previous blog posts (link here and here), I detailed how violated Securities and Exchange Commission Regulation G that governs the disclosure of non-GAAP financial measures. These two observations illustrate how continually cherry picks information it deems most favorable to the company, while omitting material disclosures that are important to investors. That would appear to be the primary reason that can't seem to keep its books in order.Once again, Overstock has proved to be the story that keeps on giving. Every time I try to find the answer to one simple…

Did's recent press release about Gradient violate Rule 10b-5?

On Tuesday, February 12, 2008 (NASDAQ: OSTK) issued a press release entitled, "Overstock Applauds Trial Court's Ruling in Gradient Case; Gradient Defendant Loses Dash for Exit as Court Sets September 9 Trial Date," hyping its litigation prospects in its ongoing lawsuit against Gradient Analytics, an independent research firm and Copper River Partners (formerly Rocker Partners), a short seller. However, failed to disclose in its press release the fact that Gradient Analytics recently filed a Motion for Leave to File a Cross-complaint against, Patrick Byrne, and others.On Wednesday, the day after's press release, above, the company's stock rose to $11.58 per share from the previous closing price of $11.07 per share or a 4.6% increase (before the issuance of the press release). Did violate Securities and Exchange Commission Rule 10b-5?Let's review Securities and Exchange Commission Rule 10b-5:… and Patrick Byrne: Phony Accounting and False and Misleading Disclosures

There is no end in site to the lies, distortions, deceptions, and false and misleading disclosures by's (NASDAQ: OSTK) management team, and in particular, its CEO Patrick Byrne. Demonstrating the level of desperation in Salt Lake City, the Overstock black ops team was set into high gear by mid-January. Early last week, the company's resident cyber stalker, Judd Bagley, attempted to smear me, in an effort to distract attention from's poor performance and accounting irregularities. You can read about that episode in investigative reporter Gary Weiss's blog post entitled, "Anatomy of an Smear" and in noted forensic accountant Tracy Coenen's blog post entitled, "Overstock "executive" playing on the internet again."I believe that I present a problem for Patrick Byrne and because I began asking difficult questions right about the time that Byrne was touting his phony "turnaround&qu…