Possible arbitrage on OSTK | OSTK Message Board Posts

Overstock.com, Inc.

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Msg  44061 of 44264  at  1/13/2018 5:15:19 AM  by

evren

The following message was updated on 1/13/2018 5:19:29 AM.

 In response to msg 44059 by  Rollgard1
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Re: Possible arbitrage on OSTK

Hi Rollgard,
Common has 7+ million short interest, the preferred has 7 thousand. There could've been some covering that pushed the common higher.
Common can be day-trading stock, preferred is keep-under-mattress stock.

I'd imagine, most of the people who are new to Overstock are not aware of the existence of a preferred.

Patrick recently spoke favorably of the synergy between the retail-side with 40 million visitors and what he wants to do in blockchain, which might indicate he is less likely to sell but that statement came after Dec 29. Regardless, I am not counting on a quick sale of the retail business to bring the preferred to par. That'd just be a nice gift.

The preferred is very lightly traded and I wouldn't count on it to reflect sentiment at any given time. But if someone offers the very-same share but with some dividend on top, for $25 less, I'll take that offer any day.

My concern was having to realize capital gains on the common but the price differential more than covers it, even if the preferred only comes to within 10% of the common.

I contemplated how much more Overstock I'd want to own if it went back down to $60s and bought that much. Then sold some common at 88-89.


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Msg # Subject Author Recs Date Posted
44066 Re: Possible arbitrage on OSTK Rollgard1 0 1/25/2018 9:01:03 AM


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