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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (25229)11/6/2006 10:35:01 PM
From: Mark Marcellus  Read Replies (1) of 78731
 
Re OSTK, I've been watching it for a while, though only for the educational value (no way would I ever invest in this company long, and I don't short any more). Anyone thinking of investing should listen to the CC: they have been burning through cash for a while and may need more in '07, if they do it will almost certainly dilute shareholders. Also, they are having a real problem with second tier executives leaving for higher paying jobs.

I think this company is in a death spiral, but even if they manage to turn it around, I think there will be plenty of time to get in at a good price once they've demonstrated viability. To me this company is, at best, a crap shoot - but smart people have disagreed with me so maybe I'm missing something.
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