The stock took off last October and has since been on its own roller coaster ride.
Shares spiraled downward 25.2% last week. As of January, the stock’s down almost 50%. It tried to bounce and failed, tried again, and failed, tried again, and is failing.
The news on Overstock.com isn’t good.
Between rapidly declining revenue, down nearly $25 million before taxes, and their low sales relative to competitors like Wayfair Inc. (NYSE:W) and Amazon.com Inc. (NasdaqGS:AMZN), Overstock.com could be headed into a brick wall.
IPOs (initial public offerings) are the market’s favorite way to get in on the ground floor of the next hottest company. For initial investors, it can be extremely profitable.
Not all IPOs were created equal, however, and the past couple years have had especially slim pickings. Whether they’ve just been disappointing, or they haven’t yet figured out how to make any sort of profit, plenty of IPOs are a far cry from Visa Inc. (NYSE:V)’s legendary 678% growth.
The best way to profit from investing in an IPO is by accurately estimating its impact before going all in.
On Friday, I talked to you about the mistake of a bill that the Senate passed on March 14. Called the Economic Growth, Regulatory Relief, and Consumer Protection Act, the bill was enacted to reduce the number of so-called “systemically important financial institutions” (SIFIs) that are subject to tough regulations like stress tests and writing their own living wills.
Truth be told, there’s a lot more to this situation than just this bill. Something fishy is going on with one of the U.S.’s most-used banks, and let me tell you, it stinks.
In fact, it could even affect your money as it stands now.
Now the House of Representatives, which already passed H.R. 3312, the Systemic Risk Designation Improvement Act of 2017, on December 19, 2017, by a bipartisan vote of 288 to 130, has to reconcile its American Bankers Association sponsored “Free Willy” SIFI freedom act with the Senate’s.
Those two bills will get reconciled, sent to the President who will sign it, and the beginning of the end to the crazy, burdensome, out of control Dodd-Frank Act will be underway… Which is a good thing.
Generally, I’m not inclined to write about legislation in process – meaning a bill that passes one house and has yet to make it into the other chamber for consideration.
However, it’s not like me keep quiet about banking rules, especially proposed rules rolling back consumer or economic protections, or protections from bankers with dirty bomb briefcases.
So, I have to touch on the Senate bill passed on Wednesday this week – on the 10th anniversary of Bear Stearns failing, mind you – because it’s the first crack in crisis-era rules that have safeguarded us since then.
There’s good and bad in the Senate bill… But mostly bad.
The former Goldman Sachs Group Inc. (NYSE:GS) President and Chief Operating Officer, who became Donald Trump’s Director of the National Economic Council, exited his position this week over a row about the tariffs he doesn’t want the President to impose.
He’s gone because he’s wrong.
Steel and aluminum tariffs proposed by the President are long overdue; they’re good for America and good for the stock market.
The reality of free trade agreements is that they aren’t always what they promise to be, and big businesses frequently use them against American workers.
Many investors are stricken with panic when it comes to the thought of losing stocks they love; I get it, it can be scary. But you don’t need to panic, you can own great stocks at much lower prices, and you can buy more of them.
There has been a lot of blame flying around. Investors have been looking for something to pin the market’s selloff on, and they’re getting desperate.
First, investors blamed the 10-year Treasury yield nearing 3% and the Fed hinting there are more rate hikes coming.
Now, the prospect of tariffs and trade wars are being blamed for the latest frightening drop off a cliff.
And, to be fair, we’re seeing crazy volatility. Markets have dropped hundreds, sometimes thousands of points at a time, then bouncing back only to drop a few hundred more points in the last hour or half an hour of trading, then gapping up or down the next morning…
But it isn’t being caused by the prospect of inflation, the 10-year yield rising, the Fed’s expected hikes, or the warning shots of steel and aluminum tariffs that were shot across the bows of some trading partners.
The market volatility that’s scaring the heck out of investors is about mechanics, not fundamentals.