Skip to main content

Posts

Showing posts from August, 2010

Overstock.com CEO Patrick Dumped Stock Ahead of Bad Earnings Report and Misled Investors About Earnings

Updated on Tuesday, August 10 at bottom of post

I have reported frequently on a range of securities law violations by Overstock.com (NASDAQ: OSTK). The company’s latest earnings report yesterday raises still new questions, concerning possible insider trading and misleading statements by the company’s CEO, Patrick Byrne.

Yesterday, Overstock.com issued its Q2 2010 10-Q (quarter ended June 30) report and surprised investors by reporting a $1.4 million loss or a loss of $0.06 per share compared to a small $319k reported profit or earnings per share of $0.01 in the previous year’s comparable quarter, despite higher revenues.

Overstock.com failed to meet consensus analyst expectations for earnings, too. Overstock.com’s reported loss of $0.06 per share was far worse than analyst expectations of a $0.04 per share loss or a 50% higher loss than expected.

A disturbing event preceded this announcement.

On May 20, 2010, Patrick Byrne's 100% controlled High Plains Investments LLC dumped 140,…

Another Question about Timing of NBTY Insider Stock Purchases Prior to Announcement of Carlyle Acquisition

In my last blog post about NBTY (NYSE: NTY), I examined the timing of purchases of company stock by directors Michael L. Ashner and Peter J. White just two months before the July 15 announcement that Carlyle Group was acquiring NBTY at about $55 per share in cash. CNBC’s David Faber reported that, “Carlyle approached NBTY with an offer in early May, according to people familiar with the deal.” Both Ashner and White purchased their shares in mid-May at about $34 per share and $35 per share respectively. I wanted to know if “early May” meant “before or after” Michael Ashner and Peter White purchased their NBTY shares.

Now, we have an answer and one more question.

NBTY Preliminary Proxy Statement

Yesterday, NBTY filed a Preliminary Proxy Statement which provided certain details of the events leading up to the announced acquisition of the company by Carlyle:
The board of directors and senior management in the ordinary course of business continually review and assess strategic alternatives …