If you look at the other internet companies in the retail area they are all trading at crazy multiples. Even Groupon, which is kind of a 2nd tier site, trades at like 4 times higher valuation than OSTK. Is it because Patrick Byrne is suing every brokerage firm out there?
I do not agree that it is discounted because of the lawsuits. That is a really old chestnut. And, as well - if the last few months are any indication - he might just win something from them. I think the discount is from total distrust of the management team and their ability to keep this positive cycle going - and that is directly because of past results and Delta Bravo moves employed by several key members of the management team. So, while $1.2 plus billion in revenue may be making the balance sheet look cheap - and that is one of the reasons why I build the long position I have - we all know the past has a way of influencing the future. Time and positive results will thankfully wash some - and not all - of that away. Time is a great healer. And that - especially that - is another reason why I am now long and not short. Don't get me wrong - Dr. Gas Can is still doing crazy stuff - read deepcrapture - that stuff is whack - it's just that now he has people who can actually run the business for him in place.
I agree with your take. There is definitely a lot of skepticism embedded in the price of the stock which can be a good thing if they continue to perform. We shall see. Good luck with your purchase. I think there's a decent chance this gets to new all time highs again.