Post by Islandtime on Jan 15, 2006 2:14:54 GMT -5
By Scott Malone
NEW YORK (Reuters) - The president of Overstock.com Inc. said on Friday he had planned to resign when he kicked up some dust in August by alleging a conspiracy of investors was working to drive down the online retailer's stock.
The executive, Patrick Byrne, claimed in an August conference call that a group of hedge-fund investors, financial journalists and regulatory agencies were acting together, under the direction of an unidentified "Sith Lord."
"I was actually planning on leaving this January for a much more interesting job. That is one of the reasons I began responding to the miscreants when I did," Byrne said in a written statement released Friday. "I wanted to flush the bowl as I left."
But, he said, the job opportunity that he had planned to leave Overstock for "has passed."
Byrne's allegations, and his refusal to identify the "Sith Lord" -- a reference to the villains in the "Star Wars" movies -- resulted in a flurry of media attention. Several of the investors Byrne named told Reuters they had not heard of Overstock.com prior to Byrne's comments.
Short-sellers profit when a stock price declines. They borrow shares and sell them, hoping to buy them back later for less. According to Reuters data, 36.6 percent of Overstock's outstanding shares are held in short positions.
Securities-law experts have described Byrne's fight against short sellers as unusual.
"When you're a public company, you're in the arena. You're going to have people cheering for you and you're going to have people cheering against you," said Jonathan Macey, a professor of law and Yale University, in New Haven, Connecticut. "I don't get turning this into a moral crusade."
Overstock shares closed at $27.12 on Nasdaq on Friday, down 35.5 percent since Byrne kicked off his legal battle. The company in late December warned that its holiday sales growth had lagged previous seasons.
Byrne's remarks on Friday came in the form of Web postings in response to questions by BusinessWeek and New York Post reporters. Interview subjects typically don't post their answers so publicly, but Byrne wrote that he wanted to ensure his views were "on the record."
Overstock.com officials could not be reached for further comment.
Byrne in August filed a lawsuit in California State Superior Court levelling charges of conspiracy against hedge fund Rocker Partners, of New York, and a Scottsdale, Arizona-based research firm, Gradient Analytics. Both companies have filed motions to have the suit dismissed.
In November, Byrne gave up his post as chairman of Overstock.com, passing that role to his father, John Byrne.
"All things being equal, I have a slight preference for the amount of consternation I am causing," Patrick Byrne said.
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NEW YORK (Reuters) - The president of Overstock.com Inc. said on Friday he had planned to resign when he kicked up some dust in August by alleging a conspiracy of investors was working to drive down the online retailer's stock.
The executive, Patrick Byrne, claimed in an August conference call that a group of hedge-fund investors, financial journalists and regulatory agencies were acting together, under the direction of an unidentified "Sith Lord."
"I was actually planning on leaving this January for a much more interesting job. That is one of the reasons I began responding to the miscreants when I did," Byrne said in a written statement released Friday. "I wanted to flush the bowl as I left."
But, he said, the job opportunity that he had planned to leave Overstock for "has passed."
Byrne's allegations, and his refusal to identify the "Sith Lord" -- a reference to the villains in the "Star Wars" movies -- resulted in a flurry of media attention. Several of the investors Byrne named told Reuters they had not heard of Overstock.com prior to Byrne's comments.
Short-sellers profit when a stock price declines. They borrow shares and sell them, hoping to buy them back later for less. According to Reuters data, 36.6 percent of Overstock's outstanding shares are held in short positions.
Securities-law experts have described Byrne's fight against short sellers as unusual.
"When you're a public company, you're in the arena. You're going to have people cheering for you and you're going to have people cheering against you," said Jonathan Macey, a professor of law and Yale University, in New Haven, Connecticut. "I don't get turning this into a moral crusade."
Overstock shares closed at $27.12 on Nasdaq on Friday, down 35.5 percent since Byrne kicked off his legal battle. The company in late December warned that its holiday sales growth had lagged previous seasons.
Byrne's remarks on Friday came in the form of Web postings in response to questions by BusinessWeek and New York Post reporters. Interview subjects typically don't post their answers so publicly, but Byrne wrote that he wanted to ensure his views were "on the record."
Overstock.com officials could not be reached for further comment.
Byrne in August filed a lawsuit in California State Superior Court levelling charges of conspiracy against hedge fund Rocker Partners, of New York, and a Scottsdale, Arizona-based research firm, Gradient Analytics. Both companies have filed motions to have the suit dismissed.
In November, Byrne gave up his post as chairman of Overstock.com, passing that role to his father, John Byrne.
"All things being equal, I have a slight preference for the amount of consternation I am causing," Patrick Byrne said.
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www.faulkingtruth.com/Articles/Investing101/1047.html
www.ncans.net/
www.investigatethesec.com/index1.php
www.cfrn.net/investigates/
www.wall-street.com/nakedshorting.html
meeke
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