Patrick Byrne A concerned citizen who has been hunting the oligarchy and Deep State since 2004. My actions forced me to abandon recently my 2,000 colleagues at Overstock.com. Help them out by going to Overstock.com and making a purchase.

Reflections on Overstock Q3 Quarterly Earnings

3 min read

A number of people have asked for comment. I listened to the full recording. I will be brief.

That keiretsu of blockchain companies is doing things of historic significance, which will translate into money if and when the blockchain revolution transpires. If you don’t believe in the blockchain revolution, this is not for you. But if you do, this network is far ahead of its time.

I applaud Jonathan’s gutsy call of an investment in Evernym. That firm has a most sophisticated answer regarding identity, and it is the leader in the Self-Soverign identity space. In truth, that is the one layer of the “tech stack for humanity” that was missing. That investment completes the stack.

It looks like PeerNova pulled it off.

tZERO and its progress is one of the most significant blockchain events on earth. Here is why it is significant. John Kenneth Galbraith spoke of “the bezzle”. If one could freeze time and count up all that was there, and all that the financial system told people was there, one would find a large difference. That difference was, “the bezzle”, in that it was the amount that had been embezzled from society. Such is the nature of financialization (and, as long-term readers will know, in my view the settlement system at the core of it all is where the big leak is).  When values are represented with blockchain security tokens, and ownership gets subsumed into a unified field of tokenization, the commanding heights of that world will be the place that people meet and exchange those tokens. For that reason, I have in the past shown a calculation showing that valuation of the exchanges on which security tokens trade could approach a trillion dollars in time. tZERO staked that spot out, and has marched its road-map towards that spot in an open, transparent way.   Did I take a bar-no expense approach in pursuing this trillion dollar real estate? Yes: the metric by which tZERO should be measured is speed-to-market, and it has won that race.

With Saum, quarter after quarter is four yards and a cloud of dust. Step back and think about the progress made here.

Retail: it has been a surprise to me how the estimates for the year changed. I learned a lot in Dave’s discussion on the earnings call. I still think it is going to still looks like its bottom line will be ≈ $100 million better than previous year (I’m not near any numbers, so I am going by gut).  Does that mean it should make another $30-40 million improvement next year in the bottom line? That feels right to me (and will to anyone who works inside organizations). And there are some especially large projects that have momentum. On the other hand, there is risk of secular challenges in the housing market, which drives a lot of this industry.  Whatever your estimate of next year’s improvement in Retail bottom line (assuming this year’s improvement over last is ≈ $100 million), that estimate should also be your estimate of how much cash the Retail business should spit off next year. The two happen to be the same(-ish).

That means that Retail subsidizes most or all of the blockchain operating cash needs next year.  And if the blockchain firms start drawing their own capital, the blockchain firm’s operating needs drop even further. Or cash moves back to the mother-ship.

Jonathan and the team are ready and robust. Yes, these last few months were tough for everyone. Yes, some friendships have been broken. That is a different matter. They are up to handling this.

Some are going to say, “Then why’d you sell, Byrne?” I wonder if, as people read through these articles I have been putting up for three months, it has become obvious to them. With everything that visitors to this blog now understand, with everything I have made clear, is it not obvious that I had to leave? Yes, I think the way it was handled was all too typical, but it surely must be starting to click for people in a way it would not have in August. Yes, the fact that a ruse was employed, and I was told the board was concerned about “the optics” of any association with me, led me to liquidate my entire position. Other times I have done something on automatic, simply on principle, it has worked out badly for me (e.g., my sale this May at a trading lowpoint, simply because months earlier I had pledged to the board that I would be selling on those dates). This time it worked out for me better than some, but it could just have easily gone against me. When I chose that period weeks in advance, I thought it probably would work out badly for me, in that I would not be maximizing price. And I hardly top-ticked it. Anyway, it worked out for me better than for some in the general market, worse than others. Remember also, I was ousted. The timing was not mine.

I am sorry for the people for whom it has not worked out. Over the last three months I have written a fair bit simply to clear up mysteries, as that is all that it remains mine to do for you. I am sorry that that is all I can do.

However, all of that is unrelated to one point: you own a stable of tremendous blockchain assets. And you have a retail company that, with one more good year of improvement, just a fraction of this year’s, will be able to fund them internally. They have a new filing, and as a last resort, they have another year’s worth of capital from me. No one has rolled with the punches like Team Overstock. And the tech stack for humanity is finally complete.

Patrick Byrne A concerned citizen who has been hunting the oligarchy and Deep State since 2004. My actions forced me to abandon recently my 2,000 colleagues at Overstock.com. Help them out by going to Overstock.com and making a purchase.

68 Replies to “Reflections on Overstock Q3 Quarterly Earnings”

  1. For the past year and a half I have been advocating for Overstock/Medici to use the Worldstock domain to create a PRINCIPLED “super website” that combines social media/networking with commerce/trade/finance.IMO,this could all start ASAP with simply being a social media/networking site while adding trade/commerce/finance aspects later.Maybe just start out with links to Overstock and TZERO sites and integrating it with the Minds.com user base?

    Considering all the censorship going on for the past few years,I believe the social media/network part could be a huge hit and could attract many people just on PRINCIPLE,not even counting the trade/commerce/finance aspects that could be added later and make this a world changer.

    Imagine a website/app/network where people from all over the world unite behind the principles of truth,freedom,goodwill,integrity,humility,the Non-Aggression Principle,the Golden Rule and voluntarily helping others.A place where we use social media,networking,trade & commerce to support each other and promote these principles we share.(And a homepage that gets this message/mission statement across crystal clear).
    Imagine a focused,inspired user base dedicated to promoting this.

    I am thinking competition for facebook,twitter,amazon,google/youtube,apple,netflix,big banks/brokerages,Mainstream Media and even politicians! lol
    Just taking a little market share from each could turn into something awesome.

    This could simply start out as a social media website/app just to gather together those people in the world who value principles like truth,freedom,peace,the non-aggression principle and voluntarily helping others.Then it could eventually morph into a website/app where these principles are promoted upfront while at the same time being a social media,commerce,trade,digital currency,news,education,entertainment(videos and video games) and communication powerhouse.

    This type of website/network could come to fruition through the meeting and cooperation of many Overstock/ Medici affiliated companies.

    Worldstock is a domain owned by Overstock and I really think that domain name could be used to make the ultimate website as it could imply a double entendre with the 2 meanings being:

    1)World Stock of products/goods/services/financial instruments

    2)A Woodstock type of vibe/event/experience gone Worldwide encouraging people to unite behind the principles of truth,freedom,peace,goodwill,the Non-Aggression principle, the Golden Rule and voluntarily helping others.

    Picture the principled website described above as Worldstock.com , a social media/network/commerce/trade site where you could buy almost any kind of product/service from almost anywhere in the world:furniture,clothes,electronics,stocks,options,security tokens,cryptocurrency,real estate,cars,insurance,mortgages,land titles etc..

    This could also involve Overstock/Medici creating their own Linux based Operating system and/or web browser .Another possibility is selling mini PCs/laptops/tablets/phones with this operating system and/or web browser built in as well as built in plug and play/set it and forget it Ravencoin or other mining as well.

    Imagine Worldstock as the “Great Lake” website/network into which the rivers of Overstock,tZERO,Medici Land Governance,Bitt,Voatz,Minds and others flow.
    Imagine the best website in the world….

    I think liberty lovers worldwide would much rather buy and use products,information and services from like-minded people.I think liberty lovers worldwide would obviously much rather elect like-minded people to office.Overstock/Medici could provide the internet gateway/homebase to make this happen and change the world for the better.

    In my opinion,all political parties are easily co-opted & corrupted.Things won’t change much until citizens unite behind truth/freedom/goodwill/integrity.Most politicians who claim to serve the public are really self servants/crony servants.Therefore,We the People must unite behind basic principles to make positive change.

    The best hope for more freedom in general is for more people to unite behind and promote freedom worldwide.Freedom of speech is obviously essential,but I would hope that there will be a concerted effort to unite folks behind some other basic principles as well.

    “A place where people from all over the world unite behind the principles of truth,freedom,goodwill,integrity,humility,the Non-Aggression principle,the Golden Rule and voluntarily helping others.A place where we use social media,networking,trade & commerce to support each other and promote these principles we share.”

    This is the best idea I can think of to make the world a better place.
    Anyone got a better idea?I’m listening……

    We have a short time on this earth,which reminds me why truth,freedom,kindness,forgiveness,integrity and goodwill are of the highest value.

    Some may say you can’t save the world,but I would say,” Why not try anyway?”
    I’ve got nothing better to do.

  2. Patrick I did see a sorry in there this is a first… Maybe you’re starting to understand how badly you hurt small investors who supported you…..

    1. Anonymous,

      What part of “oust” is confusing you?

      When you are told that the firm cannot get insurance with you there, that is discussion-ender. There is only one honorable thing to do at that point.

      Maybe that is why it was chosen…

      1. I disagree with you and you could have held your shares and spoken to shareholders… I think you are playing both sides of the fence here. You are not the typical CEO… You were the founder and lets be honest very outspoken with majority ownership. You came to share holders like me and said its time to pivot to block chain lets do it together.. All along you talked about great things that were being done and how it would change the world. You talked about “cold fusion” and how great things were. I can’t understand how you could dump all your shares just like that when you said the things you were doing were more than just about money… It makes no sense to me. I also feel like in your exit you were happy to make some issues because of your anger about what went down. I get it and understand it but what about me( small shareholders who supported you? Just collateral damage to you)

        1. The race ain’t over yet. Your shares are only worth today’s price if you sell.
          Don’t these articles constitute more communication with the public (shareholders included) than we can reasonably expect, or ever get?
          There will always be risk.

        2. Tell it to the board. I got their message that they were “concerned about the optics of any association with me.” That’s not the kind of thing boards generally say to their largest shareholder while expecting things to stay that way.

    2. I think while you and all we others had a right to be disappointed in the fact that Patrick quit, after he’s explained what’s going on there, it’s totally understandable.

      In fact, understanding what has apparently been going on since years and years (all this politics), I think we should be greatful that he hang in there for so long and hopefully to the point where current management can sale the ship successfully.

      1. Thanks. But you know, did I quit? I’m not sure. Some people gave me information that made quitting the only thing to do, but it turned out the information was gamed. So that feels more like “being ousted” than quitting. More material for Talmudic dispute.

        And no, you are not “collateral damage” to me. I’m not sure what you want me to say. You know how many shareholders were calling this summer, telling the board to get rid of me and the stock would squeeze to $50? Lots. How many were calling and saying the contrary? I did not hear of one. Did you call?

        I AM SIMPLIFYING MY PREVIOUS SHARP COMMENTS WITH THIS REFRAIN: Folks, I did not plan on selling my stock. I thought I would be slipping off on friendly terms as the time became obvious, and had planned a sale of 4-8% of my shares, then 10b5 over 3-4 years. Something came up (the D&O insurance thing) that made me pull the trigger, but on the last day or two there, I learned that this proximate cause of my stepping down was engineered, and I got a message that the board “was concerned about the optics of any association with me” , had disinvited me from future events, and such. So I immediately changed my plans and decided to sell all my stock, and let enough people know about it that it cannot be challenged. That’s really the long and short of it. This time it worked out one way, it might have worked out worse, it might have worked out better, but none of that matters: I had planned on doing a nice slow leak over the first few years of being away, but once that mischief started happening, of course I was not going to stay a shareholder (with the board telling me that they are worried about “being associated” with me). From that point it had precisely 0 to do with anything at the company (other than, an additional data point arguing for me to go through with it would be to have capital on hand, in a investment countercycical to retail, should the company need it). If that is not explanation enough, I do not know how else I might say it.

        That said, of course I am sorry for how your trade has worked out so far. I have written these essays to let people know what has gone on behind the scenes, that they may have confidence in the team there as well. It has not just been some random “oops cannot get that sale done” thing with Retail, for example. But the team is solid, and the assets are there and so well positioned.

        1. Patrick, your decision to leave was best for Overstock, its shareholders, and the country. You created technology that will change the world, and steady execs will see it through. Founders leaving is a story we hear again and again. It doesn’t make you a bad person–quite the opposite, actually.

          Your exit may not have been pretty, but perhaps it was the only way that this outcome could have existed. Now you get to shine, focusing all your energy on bringing evil to its knees. This is the best outcome for everyone who’s good. Have confidence in that.

        2. Having been a interim president of a company going public and a CTO of another two, I have NEVER experienced a CEO or former CEO giving this much contact, let alone get a real apology. What ever Patrick’s roll was in where the stock price is now I believe he played his hand well and did what was necessary. I still hold my OSTK and don’t plan on selling unless they cancel the dividend. I don’t blame Patrick one bit for the stock price and I am glad he got out when he did. He is much more effective with bigger war chest. IMHO the stock price would be here no matter what. The only thing that would have change the stock price is if the dividend had happened like it was announced.

          That is why they had to get him out.

  3. I will agree. I was nice to see a sorry, although I don’t think you had a choice in many of the things you had to do. Maybe what I was looking for was more of an emphatic sorry than a sorry sorry.

    Over the past year I’ve been telling everyone I know about OSTKO, blockchain, tZero and everything Overstock. I picked my time to jump in this June and invested about 65% of my net worth (over a period of 3 months). I know many people think that’s just stupid to invest that large of a stake into one company, but I was bought in. Turns out they were right, because I have lost a ridiculous amount of money…… Like my kids can’t go to college kind of money.

    I read every news article, watched all your youtube presentations, researched & researched & researched, and I still think this is going to be something revolutionary. Just sucks how everything has gone down over the past few months.

    The thing is, I still own my shares(5,650 shares). I’m going to try and ride this out, because I still believe in it, plus I don’t have a choice at this point. I just want to know if/when you think this whole thing will rebound. Sounds like never as long as the SEC continues to kick OSTK while it’s down.

    1. BTW….I meant “empathetic sorry”, not “emphatic sorry”….

      Two totally different meanings, haha! Damn spell check…..

      1. Well I’m definitely not a millionaire, all relative I guess. Total all in at $95,000 cash, over a period of 3 months was up to $115,000 at one point, and now its worth $45,000. So I would hope $50,000-$70,000 isn’t something that a normal person would sneeze at. Rich or not.

        P.S. I went to community college. I’m a department manager at one of the largest engineering firms in the country (so not a horrible job). Fun fact, we also just happen to own the building that Patrick’s Rabbi works in (Kiewit Tower – Omaha, NE). I see him ride the elevator some mornings.

        Definitely not bragging because I’m sure I’m in the bottom 1% of everyone who reads these posts. Just a small town simpleton trying to make it in this world like everyone else.

        1. I’m just a plumber, I happened to work on the kiewit tower when it was built. Dont work about your kids college, it’s over rated anyways. Push them into a trade- honest work. If not, the govt will prob make college free, if they dont the sites like Khan academy will be the future of education.

        2. True, Anonymous:
          $50k-$70k is not anyone would sneeze at millionaire club or not. (In fact, I have a “thesis” that the wealtheir one is, the “stingier/money-concious” one gets, and even $10k becomes more important than it was when one had less money ;))

          However, I do agree with WayLongCTL that college is not *essential* to your children’s happiness and success in life – I say this as a father of an 8-year old, getting increasingly devoted to him, even though as a happy bachelor, I never saw fatherhood as the most fulfilling “role” in my life -…. I wish you well, it looks OSTK should be able to manage without Patrick – i tend to think, rightly or wrongly, the value of a founder/CEO is the extent to which their company can run with or without them.

          Take care, and all the best,
          Anil

  4. You have built something pretty impressive. I have not sold any of my Overstock stocks, nor do I plan to. I believe it has a solid foundation and vision that will either change the world, or at least survive it when others will fail.

    I am glad that you choose to put your unfiltered account of everything that has happened with Overstock and the Russia investigation. I think it makes a lot of things clear. I may have a temporary set back in the market, but I am not a short-term investor. I understand that your apology probably helps a lot people, but I prefer to give you a thank you, you deserve that more than stockholders deserve an apology.

    1. I also agree with this. I think my statement above was a little one sided, so I will clarify. You have built something that is truly going to change the world (once people understand it). I definitely wasn’t looking for an apology, but I felt a bit targeted in one of your previous articles blaming the stockholders for forcing you out. That’s definitely not what I wanted to see happen, nor did I have even .00001% of say in it.

      I too am going long on the stock, just hope I can hold out long enough. I think JJ was the right choice and is going to get OSTK back on track. I’m super pumped to see what’s going to happen with OSTKO, and the 565 shares I will own. I’ve also done a little trading on the dino platform to see how it all works. Also downloaded the tZero app the first day it was available on android.

      I’m definitely still a believer, it’s just going to be a rough go until the SEC calls off the dogs.

  5. I also agree with this. I think my statement above was a little one sided, so I will clarify. You have built something that is truly going to change the world (once people understand it). I definitely wasn’t looking for an apology, but I felt a bit targeted in one of your previous articles blaming the stockholders for forcing you out. That’s definitely not what I wanted to see happen, nor did I have even .00001% of say in it.

    I too am going long on the stock, just hope I can hold out long enough. I think JJ was the right choice and is going to get OSTK back on track. I’m super pumped to see what’s going to happen with OSTKO, and the 565 shares I will own. I’ve also done a little trading on the dino platform to see how it all works. Also downloaded the tZero app the first day it was available on android.

    I’m definitely still a believer, it’s just going to be a rough go until the SEC calls off the dogs.

    1. Both Tony S and anonymous,

      Thank you for your kind words. And again, of course I feel terrible for the shareholders.

      I’ll tell you the truth: some days I think experience has shown that no matter what happens, there are Irregularities and iOSTK trading on NASDAQ, and it may not be able to really express its value until in one way or another it shifts itself into trading in blockchain. Even when we have done well, and been nicely profitable, the stock never moved much. When there are people out there willing to pay 90% interest (or even 350%), And regulators willing to let it language on the Reg SHO list for years at a time, I think They could be shitting vanilla ice cream, and the stock would not move to where it should. That is a testable hypothesis, if T0 is allowed to go forward.

      Of course, maybe I just woke up on the cynical side of the bed this morning. In any case, it sounds like there is a full proof way to get those tokens trading by March, in a way that the SEC won’t block. Just that fact alone will be a game changer for the valuation in the company. It’s set up an opportunity for arbitrageurs to just our back-and-forth between the two markets, NASDAQ and T0. That alone should fix the issues with the NASDAQ trading. So really, if they have some other full proof plan to get this done, and get through with it, I think that creates a lead pipe cinch for them.

  6. Patrick, would you care to share how your Rabbi, The Oracle, would “value” OSTK shares in order to identify the fair price including all of its parts? You said that he said “you were the only Etail company that made money” when sitting down with him in May as though he was impressed.

    Additionally, he told you to go “ALL IN” block chain and sell Etail, which means he had some understanding of the huge “free cash flows” relative to the significantly higher margins a more “intellectual property” based block-chain business might provide your shareholders at the same time excluding 1-2 percent net margins on toaster ovens.

    In the meantime, one or both of his appointed investment managers, TNT, decided the purchase of Etailer, Tech Giant, Amazon(AMZN), expecting to be able to see huge unfettered free cash flows well into the future while expecting a multiple “trillion dollar” market capitalization valuation in spite of the late start they have made investing in that name. It must also surround belief in their various business moats.

    Price discovery has never been allowed to develop fairly in your “security” due to the manipulations and machinations which continue unabated for almost two decades. However, your selling regardless of the excuses you have continued to make is indicative of a prior owner who didn’t believe in the “trillion” dollar addressable markets he was touting in his presentations to ever be garnered by Medici, its subs or investees.

    If I used your highest price of $21ish as part of your recent selling orgy, you have told “Mr. Market” you believe $777M for Etail including the sum of all its other parts was more than fully valued. Sad indeed, Patrick, very, very sad. You mentor has taught the general public to “trust their management teams,” and it’s our bad that we continued to trust in you.

    As for that freak troll(WAYlongCTL) aka, “Yahooligan,” who follows me around cyberspace, the one you have engaged more recently regarding me, tell him/them that I am not hiding in Singapore or wherever the hell you are like you, and if they want to address me in person, we can name the time and place right here for documentation purposes, and see what happens after that. At least you understand a little German, Patrick: Ich habe große Wut auf die Wall Street und ihre Verbrecher wie sie. Value Carl

  7. Patrick, a situation is emerging in Ecuador where my husband and I are currently living that might make it a good candidate for your “new civilization based on blockchain” products.

    Also, I’m highly trained in systems thinking and have some “puzzle pieces” that I think might fit with yours in fascinating ways.

    With everything you’ve been through, might you like to take a short break in a beautiful Andean valley filled with many kindred souls? – in the spirit of, “There’s a time to stand and fight, and a time to go to the hills and write poetry.”

  8. A tad interesting, won’t you admit, that sales preannounced to the board, coincide with lows? While your auto-liquidation, shared within a smaller circle, sells at a high.

  9. And finally we have the (hopefully final) key dates of the digital dividend. It seems the management has been able to “tame” the SEC? Do you have any thoughts on what might be going on there behind the scenes?

  10. 2Funny is the pathetic troll who seeks to agitate without name or face. I actually prefer Wendy’s and own her stock. I guess my half Italian gene does make me less German than I think, but my pride in Deutschland lives forever…fur immer…umlaut missing over u.

    Maybe you’re that other fighting Irishman, Kevin O’Hara, who I helped take down at (3) for his bold face public lie right B4 Crowe’s Big Toe Stub incident…you sick degenerate.

    Either way, you’re going to remain hidden like the chicken you are. You should be deep fried Kentucky style, spicy as hell because you are not original. You can send my regards to Rob Powell though.

    1. Lets meet up, I suggested horse shoe casino, or ameristar. You like to make threats, but then chicken out. Well here it is, out in the open. I accept your offer. My big black boots ready to do some stomping anyways… I’m not scared of you, never will be.

  11. Could you considered investing couple millions in tZERO token to restore morale of tZERO investors?
    After all, you marketed tZERO at around $10
    Currently it’s 1/9th of ICO price.
    If it recovers to ICO price. You will make 9x from your investing.
    Isn’t that great investing opportunity?? or you see it differently?

    1. Fair question its now 1.20 and you were taunting it at 10.00? If its still so great and the 1.20 price is a function of an ill liquid market why are you not buying here?

    2. I’m not about “restoring morale”. I will consider an investment in the company, but only if asked. But the last I heard, the board wanted no association with me. Let me also be clear: it is not what I want to do, either. I do not desire to go back and make an investment in them. I would prefer we go out separate ways for good, and they pull it off on their own. But those who doubt their staying power can know that I could, if asked, provide them about one year of capital.

      1. You did not answer the question above in regards to buying the tZero token as an investment at this price of 1.20? This has nothing to do with bailing anyone out? You out there buying crypto for investments why not the token. You must think it is worthless or not much upside?

  12. Man you’ve got some disgruntled followers…bet that andes offer sounds keen amist these sour grapes.
    Boys and girls, bolster your courage BEFORE you invest. There are no guarantees in this game, and no individual is in absolute control of results.
    This story is outlandish and phenomenal, and clearly tugs at peoples feels in many directions. You been aproached about a movie yet, PB?
    -In the tech stack we trust.

    1. Thanks for being the adult here, Cooparchy. You know, when our stock ran up from $8 to $80, how many thanks did I get? 0. Not one shareholder. They just feel like geniuses. But then it goes from $80 back to $8, and it’s, “You bum!”

      The Andes thing does sound good.

  13. I can’t believe what I’m reading you want a thank you for making the stock pop and than go down to 7 range.. I guess if you were in the business of catering to day traders. Certainly you dont think you deserve a thank you from long term holders of the stock. How do they befit from big pops that end lower than where it popped from. The job of a CEO is to deliver long term gains to your long term shareholders. “Ask your rabbi” Now ask yourself this if someone owned your stock for the last 10 years did you deliver any long term growth or wealth to them? I would agree you can’t measure this over a year because of market fluctuations but certainly a 10 years if a fair bar? How about 15 years. Would someone have been better putting there money in a CD which has paid very little for the last 15 years? Certainly we would not want to measure you against the general stock market and your performance as CEO during your time. You want a THANKYOU from me because a few times the stock shot up and than crashed… I’m stunned…

    1. Said like a champion investor, Anonymous. That’s why as an LP of Sanjeev’s Fund-Prem Watsa’s Crew Boy at the Corner of Berkshire and Fairfax–we implored upon him to sell into the $80’s which he wisely did knowing that the history of Overstock.com including its recent block chain products are more hype without the ability to deliver on “selling products” commensurate with the opportunities Patrick has described as part of “addressable markets.” Trillions blowing in the wind!

      They don’t know how to scale or don’t have the capital to put in the necessary sales force to “scale,” or really don’t have the “products” that are finished while patents are still pending to “scale.”

      Interesting though, to show what a buffoon Patrick is, and the fact that he couldn’t understand how to value his own company, we are sure there were periods during those with hindsight, “FAKE RISES,” that he may have had a window to sell, but didn’t. It really shows how little even “INSIDERS” seem to understand the difference between “price” and “value.”

      Like I have told Patrick and others over time, if the stock price “appreciation” is not “sustainable,” then the underlying business is a farce. Patrick you have censored my most recent response to that rabble rousing “TROLL,” WAYlongCTL, so shame on you again, sir.

      It’s true that we sold early going up, and got snookered on the back draft beginning in the thirties down to teens, and that remains connected to the salesmanship that Byrne did in his presentations to The Street as well as the back and forth baiting and switching–which still continues by Jj after he left–regarding the sale of Etail.

      Maybe this time the SEC investigation into Byrne’s selling as one new item, won’t stop the sale from taking place regarding that party Byrne said expressed their interest again beginning May past. The down grade by that charlatan, analyst, Tom Forte, expressing a six dollar value to Overstock’s Etail stand alone, would put a damper on any “premiums” like the $30 numbers that were touted earlier, plus the fact that the share count is being BLOATED AGAIN as I write.

      Patrick remains delusional and in need of help based upon this post showing his absolute indifference to the most important principles of “securities analysis” that his mentor and Rabbi promotes publicly at a minimum. Patrick, remember that it was me who connected you back to Buffett in May, and it was me who tried to get Elon to “block chain” Tesla’s various financing needs with tZero–you referenced me on Twitter regarding that back around September 24th also–and it was me who politely asked the Louisiana Law Firm to stand down against you, and sue the Regulatory Body at the SEC as well as the prime brokers and their hedge fund clients as part of the most recent CF. So asking that FN, “TROLL,” on this forum, “Who Carl is?,” is another form of your arrogance and disrespect. That’s who Carl is, Patrick.

      1. It’s all about “Carl”. Always. Why not start your own blog and leave PB alone? No one will censor you there, you can block me. I see no downside if you start a blog… get lost Carl

    2. Anonymous,
      On the day I left, August 22, the stock was at $20. It went to $21 on the announcement (causing CNBC and the NPC journalists to write of it “soaring” on my departure). Market cap was $775 million. We took in $400 million in capital, made something worth $775 million: I agree, not much payback for all those years of work (but in the face of so many competitors flushing billions before disappearing, maybe that counts too). On the other hand, we were on the Reg SHO list, there were another 18 million shares short at an average negative rebate of 90% being paid, and so one can only guess at what the price might have with an SEC that enforced rules so that the firm might have been able to capitalize and grow like any normal eCommerce company. And on yet another hand, we also had a hand with four aces in it (the dividend) ready to play. So that is where you were when I left.

      I AM SIMPLIFYING MY PREVIOUS SHARP COMMENTS WITH THIS REFRAIN: Guys, I did not plan on selling my stock. I thought I would be slipping off on friendly terms, and had planned a sale of 4-8% of my shares, then 10b5 over 3-4 years. On the last day or two there, I learned that the proximate cause of my stepping down was engineered, and I got a message that the board “was concerned about the optics of any association with me” , had disinvited me from future events, and such. So I immediately changed my plans and decided to sell all my stock, and let enough people know about it that it cannot be challenged. That’s really the long and short of it. This time it worked out one way, it might have worked out worse, it might have worked out better, but none of that matters: I had planned on doing a nice slow leak over the first few years of being away, but once that mischief started happening, of course I was not going to stay a shareholder (with the board telling me that they are worried about “being associated” with me). From that point it had precisely 0 to do with anything at the company. If that is not explanation enough, I do not think longer ones will make a difference.

      1. Patrick,
        I read your points some have merit and to me some are excuses or shifting blame… The dividend was and is exciting to prove concept on a larger scale and bring on board customers. Still can’t understand why you never marketed the wallet platform on overstock retail. The way it was set up originally would have caused a short squeeze but not sure that brings long term value. Assuming the divided happens this time it will accomplish all the goals. It even bring on some other brokers to allow more trading options which one could argue from long term shareholder is better but may not cause the short squeeze. Regarding your point about the board I would love to get my ass in there tell me how? I read the rules and a shareholder like me has no way. You also mentioned that had they gone through with the dividend they would have had a ton of issues regarding the SEC. I feel like Wells letter and legal demands from the SEC may have been a worse outcome if that is even possible at this point. Not sure shareholders would have gotten the pop but a shareholder like me would probably be sitting at 3.00 shares here?

    3. Yes, I am sorry the stock has worked out for you folks as it has. I am. I have explained how it happened to work out the way it did for me, and I am going to paste it again below, and just use it when anyone brings it up.

      I think we learned something this summer. The average negative rebate was 90%. That means that there are some giant forces at work willing to pay anything to keep our stock from moving up. People are not going to let this budge in the market. But in a blockchain capital market, OSTK problems are solved. So one of the points of getting tZERO trading security tokens is that Overstock could shift more and more of itself there. These things Saum is doing with real estate is ground breaking.

      I AM SIMPLIFYING MY PREVIOUS SHARP COMMENTS WITH THIS REFRAIN: Guys, I did not plan on selling my stock. I thought I would be slipping off on friendly terms as the time became obvious, and had planned a sale of 4-8% of my shares, then 10b5 over 3-4 years. Something came up (the D&O insurance thing) that made me pull the trigger, but on the last day or two there, I learned that this proximate cause of my stepping down was engineered, and I got a message that the board “was concerned about the optics of any association with me” , had disinvited me from future events, and such. So I immediately changed my plans and decided to sell all my stock, and let enough people know about it that it cannot be challenged. That’s really the long and short of it. This time it worked out one way, it might have worked out worse, it might have worked out better, but none of that matters: I had planned on doing a nice slow leak over the first few years of being away, but once that mischief started happening, of course I was not going to stay a shareholder (with the board telling me that they are worried about “being associated” with me). From that point it had precisely 0 to do with anything at the company (other than, an additional data point arguing for me to go through with it would be to have capital on hand, in a investment countercycical to retail, should the company need it). If that is not explanation enough, I do not know how else I might say it.

      That said, of course I am sorry for how your trade has worked out so far. I have written these essays to let people know what has gone on behind the scenes, that they may have confidence in the team there as well. It has not just been some random “oops cannot get that sale done” thing with Retail, for example. But the team is solid, and the assets are there and so well positioned.

      1. Patrick,
        I appreciate the acknowledgement I felt like before you were seeing only one side your story. However there are longs who bought this and supported you and your actions have had big effects on us. We are not the shareholders who you name in your irrelevance. I appreciate you starting to see other sides of the events other than just yours.Also it was not a “trade” for me but an investment that I hope will work out. I know the risk of investing but this one investment certainly brought on other variables that are beyond the typical risks an investor has…

  14. I will say I do respect the fact that PB is putting up these posts which I believe to be legit questions and not trolling…

  15. Patrick, why don’t you learn to play the pan flute? It’s small so you can travel with it. It will occupy your restless mind in a different way and be a challenge. The sound is very calming and meditative.

  16. Patrick you should have put some bums on the board who could get a rat shit about D&O insurance Wall St makes public companies act like they want them to act. This is the wild west so let it be.. The add no value anyway as you can now see..

    Hey People the stock went to $90 he sold at lows what else can he do? Its over sue the company and see what you get, just reading he used major laws firms to take care of his exit looks to me like his sales are well protected..

    Wall St looted you keep pissing on Patrick is just what they want you to do. Good luck and go enjoy your life

  17. Four yards, and a cloud of dust. LOL….that spells it out nicely for tZero regarding lack of execution compared to the opportunity.

    Patrick, some say the withdrawal in the shorter term from the “stock lending” business is a good maneuver since the space has become “crowded” and the margins severely impaired

    Since your friend, Psalm(34:18. 18), has put off pursuing the DLR business, are you concerned that the “speed to market” where you once stated institutional players were biting at the bit(18 bitts or basis points) SAVINGS that tZero would capture?

    Additionally, what happened to tZero’s patents to preclude newer entrants in the space or require a “licensing fee” in exchange?

    Oh yes, Jj is now saying patents across the block chain space are mostly “pending” and “open sourcing” product portfolios is somehow going to lead to the best source of growth notwithstanding the huge legal fees that OSTK shareholders incurred building systems and proprietary technologies in pursuit of necessary profits.

    You and the promoters of your stock have changed your stories as fast as we change our underwear. I was glad to hear that The Oracle told you to sell Etail and go all in blockchain. However, it’s too bad he didn’t go “all in” with you while you were at Overstock to get it all done, and rid yourself of the trials and tribulations that ultimately became your personal downfall forcing you out of the business you created. It continues to be illuminating that he didn’t believe in you enough to make the necessary bet that would have easily catapulted you to success from a financing perspective. I supposed that’s why you have avoided my question regarding how he would “price” the underlying “value” of OSTK shares.

    Is it true that it was indeed Nebraska Furniture Mart that is still kicking around the Overstock Etail tires?

    1. You toolbag, I started the NFM rumor. You were a chump lvlt investor that lost a lot of money buying when “cramer” told you stock of the year at $6. Your a loser, small fry, lacking muscle. That’s why I’m swimming in a lake, while you’re drowning in a puddle.

      1. When you man up, we can meet and prove who swims in lakes, and who is elsewhere. Name, address and picture, please. Let Byrne verify it for the record, since you’re an abusive FN “troll” who wouldn’t be trusted otherwise. So you know, we started our (3) position in 1998 following Warren Buffett and The Kiewit Engineers, and we bought some of the lowest shares–loaded up tractor, trailer trucks–in history(60 cents pre-RSS, and $9 post) years later, and ultimately made a return on our shares during a fifteen year investment period.

        I will caveat that by saying, our greatest returns since exiting when we did and re-establishing positions in CTL, today, with a basis near $11(including a nine percent per year dividend), continues to be the gift that keeps on giving. We can’t get enough of it, and are hoping that lying, rumor spreading criminals(as you admitted right here) can drive those shares lower to us again.

        Go ahead, put your name, address and picture right here, so we can have the face to face, EYE@EYE meeting and see what happens including how well you do at kicking me with your big black boots as you have already said you were going to do.

        We’re buying some near 60 cent each CHK shares IN SIZE like LVLT in 2011…..what’s your pick of the day for the record to be judged later? YOU FN TROLL!

        1. 15 years to turn a profit and you’re bragging? All heil “Carl the great” as you call yourself elsewhere… you change your name as much as you change your underwear as you say. Prob cuz you are always pooping you pants with your bad investments. I’m WAYlongCTL as my pick. Let it be know for future records. And if you recall, I set the bottom in lvlt at .5708. My purchase turned that stock around that day… you’ve been butt hurt ever since. Come to omaha, I’ll take you to WB house. We can fight there

  18. You should also know that we knew more about (3) than KRIMINAL KRAMMER ever could including calling him circa 1999 to discuss it on his “call in” program, when in fact his screeners said….”we’re not ready to discuss that one yet”….always standing out in our minds that there is a Wall Street FIX for how they pump and dump stocks using KRAMMER, the Goldman Alumni, as their “KARNIVAL BARKER,” and front running KLOWN.

    The one video that I had located which was somehow eliminated from the INTERNET was when that SOB detailed to a Manhattan gathering of Wall Street mucky mucks and wannabees, how he INSIDER TRADER Health South including lambasting the CEO to give him the earnings number before he left on vacation so he would know what to do, and which he had ended up SELLING after finding out how bad they were going to be!

    Maybe Patrick still has that video, but I think not, because I think Goldman made sure it would never been seen again lest KRAMMER would meet BUBBA in jail……which is still where he belongs today!

    YOU R DEALING WITH KRIMINALS of the highest element here on Mother Earth when dealing with Wall Street. God Save the People from this Beastly Creature.

  19. One of Patrick’s “Deep State” friends……….having a host of problems it “appears.” Sure, I’ll meet you at WEB’s house……and I will remind him that his involvement and marketing of Level 3 Communications early on when I thought our family was cloning him, remains the GREAT BLEMISH that continues to be unforgettable with respect to him and the strife it caused in our family for following him. That being said, Level 3 ended up killing a couple of Kiewit Engineers including Big Jerry Toll, and wiped out a lot of Omaha Fools along the way, too, so fifteen years and some return was better than what they got! Be careful what you wish for.

    https://thegreggjarrett.com/doj-releases-mountain-security-violations-strzok/

  20. WayLongCtl: Did you know that Charlie Munger told me to get out of Level 3(LVLT) in 2011 stating Walter Scott, his fellow director, and LVLT Chairman was a great guy, but the company wasn’t? The stock was around $11.00 post R/S/S at that time compared to our lower cost “basis” in “size” of $9.00. It’s a good thing I didn’t listen to him, and waited to closer to $30 to sell our shares.

    Patrick: Did you know that Charlie Munger told me in 2011, in a private conversation after I referenced your name regarding “systemic risk” in the financial markets due to “illegal naked short selling,” and he told me by changing “one word” like the good lawyer he was trained to be, “that short selling was not a problem for our U.S. Financial Markets? That’s when I lost respect for that Old Hoot Owl, since I knew he was lying through the ONE EYE he has left that isn’t BLIND.

    Be careful about the MYTHS regarding these so called “SAGES.” They are consummate insiders who have benefitted from The Keynesian Magical money multipliers created from nothing and by fiat. This is why I have called Patrick’s partial life mentor, his Rabbi, “THE GREAT INFLATIONIST” over the years.

  21. P.S. Assuming my last post is not censored like some which continue to be censored, my private conversation with Charles T. was in 2008(At the Dawn of Buffett’s Great Recession), not the same 2011, where he criticized–a one hand slap with a gentle second hand–fellow Berkshire Director, and Chairman Emeritus of Kiewit Construction, the Fat Zoo Keeper as some know him to be, Mr. Walter Scott.

    WaylongCTL–take your plumbing pipes and whatever else it is that you do, and go JUMP in an FN Lake…..the big lake at your house of course, and if you drown, the world won’t miss you or your kind.

    1. Carl, I’m literally the only person left that stil likes you. This is how friends like us talk to each other. Remember- “why must you forgive” that hate you hold will eat away at your soul. Besides, no one else will talk to you anymore…

  22. You know what was boring for me today, besides your useless drivel? It was tZero’s investor conference at One World Trade Center in New York. What a disaster of a company Byrne threw $285M in cash for block chain businesses that won’t scale and will ultimately fail with the management team I heard this morning.

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