The story of Overstock.com (NASD: OSTK) and their CEO, Patrick Byrne, who exhibits paranoid-schizophrenic behavior is well known. Among other things, he believes that there's a sinister cabal consisting of rogue hedge-funds, South Asian arms dealers, and naked short-sellers conspiring to depress shares in his new company. In his war against these evil folks, today he fired another shot:
"In the past I have described how my family and I have experienced delays trying to get brokers to settle our trades, let alone obtain possession of stock certificates of shares we already own. I attribute these problems to what I believe are millions of counterfeit shares of OSTK trading on NASDAQ, along with the SEC's turning a blind eye while refusing to disclose (and prohibiting NASDAQ from disclosing) the number of counterfeit shares landing us on the Reg SHO list every night. I feel obliged to remind shareholders that the only prophylactic against hedge fund counterfeiting is for shareholders to obtain their actual physical certificates from their brokers."
Counterfeit shares? Telling shareholders to obtain physical copies of their shares is ludicrous, and an obvious Trojan-horse to accomplish his broader goal, which is to attack any short-sellers: Shares physically held like this would be unlendable, and thus unshortable.
I don't know which would be worse, being an OSTK shareholder, and having this man at the helm, or being on the OSTK board and having to play along with their bosses fantasies.
> I don't know which would be worse, being an OSTK shareholder, and having this man at the helm, or being on the OSTK board and having to play along with their bosses fantasies.
How about being Byrne's father, the new chairman of Overstock? :)
Posted by: William | November 18, 2005 at 11:14 AM
This guy is off his rocker. Counterfeit shares? What the hell is he talking about. I can't understand why anyone would hold shares (physical or otherwise) in this company. The business model is not proven, the CEO is a nut and the board is stuffed with his friends. SELL!
Posted by: Kevin | November 18, 2005 at 01:17 PM
He needs to start defaming the analysts who cover his stock, and get them to come to a consensus on Overstock's future earnings. Now that's a real conspiracy.
Posted by: bronxite | November 19, 2005 at 09:59 PM
I agree.
If you've never listened in on an OSTK conference call, you're missing out some some of the most salacious stuff Wall Street has to offer.
Shares of OSTK have been trounced ever since CEO Pat Byrne -- caught in a catatonic state of corporate paranoia -- claimed that there was a "conspiracy" against him and his company.
What conspiracy, Patrick?
OSTK is an online liquidator mired in operational woes.
You're hemorrhaging money.
Of course the shorts are going to hunt you down.
Mark Cuban is the only smart one here -- he's short 20,000 shares of OSTK.
Posted by: catablast! media LLC | November 20, 2005 at 02:22 AM
http://www.thesanitycheck.com
Posted by: fred | March 12, 2006 at 03:54 PM
This nut case better watch out for mercury insurence. The Mercurians are hooked=up with those evil hedge funds. They live off counterfeit shares ofoverstock.com How will they survive with no more counterfeit shares.
I know this . I visited mercury on my last vacation. It is hot there in the winter.
Posted by: tracy de soto | January 17, 2008 at 05:23 AM