Is Joe Tabacco really independent? That sign held up by Mr. Byrne (beginning of today's blog) points CNBC viewers to www.locatestock.com, which is a website run by John and Derek Tabacco. Is this purely coincidence? Or is there a family relationship between Joe Tabacco and John/Derek Tabacco? Could this explain Joe Tabacco's inaction in the presence of strong evidence of corporate malfeasance?
Sam does a good job putting quotes from 2006 next to quotes from 2007 about 2006 and comparing them. But the conclusions he draws might be a little too black and white.
Just consider
Sometime during the first quarter of fiscal year 2006, Patrick Byrne knew that things would be really ugly at Overstock.com. He had a game plan to handle the crises.
Patrick Byrne knew what was going on? Had a plan? And kept quiet?
Sam quotes some bluster about "sophisticated inventory analysis". Wasn't it in late 2005 that they stopped adding inventory to their system for a month because of a computer glitch? But in early 2006 they have sophisticated analysis? Sam's argument seems to be that they really have this analysis but that's speculative.
The inventory valuation is a real problem because when you have discontinued items that are not selling, you know what the market clearing price isn't but you don't know what it is. They can say they are confident but they don't say how their calculation is done or quantify their confidence. I doubt they have really thought this through.
At least Joseph. J Tabacco Jr, with whatever faults he may have, got Judd Bagley to take down despicable anti-Semitic smears off of antisocialmedia.net.
Respectfully,
Sam E. Antar (former Crazy Eddie CFO and convicted felon)
I agree with you in part Sam. But what has Tabacco done about the rest of the ongoing smear campaign and the plethora of securities violations by Overstock management? Nada...
Tom Bush:
I have corresponded with Joseph J. Tabacco Jr. and certain limited baby steps were taken. While he certainly has not taken all of the steps he should take to clean up the mess at Overstock.com, he has done a lot more than about any one else at the company to clean things up.
Please read my following blog item for additional details:
Title:
Patrick Byrne, CEO of Overstock.com, Continues his Ugly Campaign of Menace
Link:
http://
whitecollarfraud.blogspot...erstockcom.html
Respectfully,
Sam E. Antar (former Crazy Eddie CFO & convicted felon)
"Sam's argument seems to be that they really have this analysis but that's speculative."
JL, you have the background on this to realize what comes from management is likely a load of bull, so you have the required skepticism not to be fooled. But I don't think that historical B.S. is justification for current and future B.S. I think it's fair to look at the representations as made and not pre-screened through a baloney filter.
JL,
The problem is that management's statements are completely inconsistent with the accounting entries that it made. That's called fraud.
Tom
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