Bears will never be happy with Overstock.com
If you're fretting about the gross margins, you're missing the real story. With marketing costs slashed this year, Overstock is paying a fraction of what it used to pay in customer acquisition costs.
And what's with the Montgomery Ward comparison? Is Michael implying that Overstock.com will only last 129 years because it's not a leader in its niche? I'll take that -- and I'll top it by pointing out that Overstock is a leader.
Online shoppers know they can turn to Bluefly
Why else would folks keep coming, long after the costly "It's all about the O" campaigns have been deep-sixed?
In the real world, I know I can get some marked-down buys at places like 99 Cents Only
Michael didn't address the company's forays into higher-margin areas like consumer auctions and lead generation, which isn't fair because he does portray online retail as a low-margin cutthroat sector.
Like most bears, Michael is more preoccupied with Byrne's imagination than Overstock's potential. It's a pity, because he's missing the show for the sake of the sideshow. Do bears even realize that some of the more bullish analysts expect Overstock to turn an actual profit next year?
Of course not. That would make them happy, and we know Overstock bears will never be happy ... wait for it ... until they cover their naked shorts.
Byrne, baby. Byrne.
Longtime Fool contributor Rick Munarriz has a few conspiracy theories about conspiracy theorists. He does not own shares in any of the companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. Sharper Image is a Hidden Gems Pay Dirt selection. The Fool has a disclosure policy.