As of April 23, 2013,
, fund manager of Chou America Mutual Funds, reduced his position
in Overstock.com (
) by 12.25%, with current shares after the trade at 1,891,587.
Chou sold in the price range of $18.91 per share, for a 1.48%
loss to his portfolio. OSTK's current price is $1.75 with a
change from average up 4%. This is Chou's second reduction so far
this year, and his fifth chop since last fall when the share
price was around $15.5, according to
GuruFocus Real Time Picks
His holding history since third quarter 2011 shows an average
price for shares bought at $11.8 per share with a 67% gain.
With a market cap of $447.19 million, Overstock.com is an online
discount retailer that sells a broad range of products including
clothing, furniture, rugs, bedding, electronics, jewelry and
cars. Its fair trade department, Worldstock.com, sells
artisan-crafted products from around the world and offers
additional unique items. The store sells 984,000 products online,
and the company has 1,280 employees.
The company's key ratios are a P/E of 23.4, a P/B of 15.3 and a
P/S of 0.4253.
Overstock's revenue spiked last fall from an increase in unique
website visitors and average order size. Although the third
quarter 2012 was the third consecutive quarter in which Overstock
made net earnings, the company was unprofitable by $19.44 million
in 2011. Overstock reported 2012 revenues of $1.1 billion and a
net income of $14.7 million. The company's first quarter 2013
revenues are also showing growth as of last week when
Overstock.com reported financial results for the quarter ended
March 31, 2013.
Overstock.com's first quarter 2013 revenue was up 19% over the
same quarter 2012, with $312 million versus $262.4 million,
respectively. The company realized a 24% increase in gross profit
with $58.9 million in first quarter 2013 compared to $14.5
million in the same quarter 2012. The company's gross margin has
increased 80 points since the same quarter a year ago.
Overstock.com's net income for first quarter 2013 is $7.7 million
compared to $2.7 million in the same quarter a year ago. The
company's diluted EPS of $0.32 per share is a $0.20 per share
increase over last year, same quarter.
A further sign of growth, Overstock opened an additional facility
in Kentucky last month. With speedy fulfillment and delivery
being crucial to the company's customer satisfaction, company
officials say this additional distribution facility will reduce
the time for resolution and refunds for customer returns.
Outbound shipment times will also see improvement for customers
located in the eastern U.S.
Jonathan Johnson, Overstock's acting CEO, said, "Overstock.com is
investing in its supply chain to get product to and from
customers more quickly and to remain customer-centric."
As of April 23, 2013, the portfolio of Chou Associates Management
lists 31 stocks with a total value of $382 million and a
quarter-over-quarter turnover of 5%.
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