The ongoing battle taking place inside this changing business model remains fascinating. The only thing that comes close in my mind having experienced it first hand was Netflix which truly pales in comparison as part of the "short thesis" which surrounded "content liabilities," which still exist today in billions of dollars more versus then, even after the stock sky rocketed more than FIFTEEN TIMES from what was around $50 pre stock split adjustments circa 2011.
What continues to seem uncanny about OSTK to me, however, remains a company with no debt on its books, and significant cash albeit with some being restricted for use in its newly capitalized tZero profit sharing venture. Like it or not, shorts, the Etail business can be profitable and is in the process of becoming so again, with what should be a favorable YE report fast approaching, and further verifying that turn around no longer allocating wasteful search engine/advertising capital in pursuit of new sales at losses.
Putting the short thesis succinctly, they say Byrne is a crook, a charlatan and someone who remains a fraud even before he went public in 2002 in order to reflect upon how deep the players who hate him are as part of their attempt to take down his company.
They also say that he is fighting for his life with a "margin call" putting up more shares as collateral but whose details are "hidden" with them being sure this reckless gambler is staking out his last stand with "lenders" who have had enough. All of this remains ongoing while the SEC, FINRA and their enforcement agencies are investigating numerous parts and pieces of the financial trap which Byrne and his cronies have laid inside the clearing/settlement business historically, owned, operated and ran in the stealth back offices of the DTCC.
They are so sure betting this enterprise into failure, that even though there are no shares to be loaned out against Byrne's company and prime brokers are calling clients everywhere to ask to borrow their shares while sharing in the loan rate being touted near ten percent to the client per year at today's rate, these shorts are using a finite, fixed, definite day being next FRIDAY to "buy" ungodly sums of puts representing more than 15 percent of the outstanding shares of the company.
Now, if I hadn't participated along with Byrne for nearly fifteen years fighting the good fight against the people on Wall Street who are clearly the crooks in this game with convicted felons like Sam Antar still pointing their fingers at Byrne, I might be shook by their audacity and conviction.
And, this is also with full knowledge that the game is "RIGGED" for insiders on both sides of the aisle, so that when a short cabal like the one who continues attacking this company remains so bold and adamant, one has to wonder if they have been tipped off by Asian parties and/or regulators inside our financial markets who are complicit with their dubious, underhanded ways.
The good news is that I am not deterred, and you who are long shouldn't be either, because OSTK is NFLX on steroids when all the "Free Cash Flows" from these high margin block chain enterprises begin accumulating on our ledger.
If it were easy, all would be rich. It's not easy, and it's never fair but GREAT RISK does provide UNGODLY REWARDS to those who have done their homework while paying a fair or below fair price, and sometimes gets lucky during the process. Byrne isn't perfect, and he doesn't walk on water, but he remains a far better MENSCH than the people trying to destroy his work and his vision.
