Grapevine has it that Overstock.com, Inc. (NASDAQ:OSTK) may be considering selling its home e-commerce business. This comes at a time when the company’s price levels for its shares hit a rising trend line. Despite reporting a net loss, which was also significantly narrow, the online discount retailer was still applauded by investors for its third-quarter results. In any case, the net loss per share of 3 cents was much lower than the 9 cents that estimate by analysts.
While trends are often measured and identified by “trendlines,” a technical analysis has it that once a trend has been formed it remains intact until broken. However, investors are always looking out for various technical indicators, which are likely to keep the stocks trending.
The exploration of a hybrid business by the Company’s CEO
As the investors and analysts celebrate the achievement by Overstock.com, the company’s Chief Executive Patrick Byrne is exploring a different approach. He is considering a hybrid business, which will incorporate online and brick-and-mortar models.
CEO Byrne is currently the Overstock’s largest shareholder with about 6.62 million shares, or 26.5%, of the shares outstanding. However, he is to be ecstatic as he says, “I have indicated for about 18 months……………….. that I hear the Gods of Economics whispering that the best model is a brick-and-click model.” The CEO is also optimistic that around the end of 2017 he will be will be exploring such a hybridization. He has the options of using click-buying-brick, brick-buying-click or forming a strategic partnership.
The possibility of unlocking the value of other significant assets
As the company considers strategic alternatives for its home e-commerce business, there is much more to expect from the current levels. There is a likelihood of having the company unlocking the value of one of its significant assets; Medici Ventures. It is one of the nine different blockchain services, which Overstock has invested in, and which leverages blockchain technology.
In other news, word has it that Overstock has issued warrants of purchase of up to a combined 3.72 million shares of common stock to “two purchasers”. This is said to be a privately-negotiated deal worth $6.6 million.
Meanwhile, Overstock’s stock closed at $52.40 an increase of $12.30 or 30.67%