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Overstock.com (NASDAQ:OSTK) declares a dividend update

Overstock.com (NASDAQ:OSTK) spotted trading -52.33% off 52-week high price. On the other end, the stock has been noted 155.36% away from the low price over the last 52-weeks. The stock changed 3.62% to recent value of $22.88. The stock transacted 9432221 shares during most recent day however it has an average volume of 4259.07K shares. The company has 33.8M of outstanding shares and 28.26M shares were floated in the market.  

On July 30, 2019, Overstock.com (NASDAQ:OSTK) announces that its Board of Directors has declared a dividend (the Dividend) payable in shares of its Digital Voting Series A-1 Preferred Stock (the Series A-1). The record date for the Dividend will be September 23, 2019, and the distribution date for the Dividend will be November 15, 2019. The Dividend will be payable at a ratio of 1:10, meaning that one share of Series A-1 will be issued for every ten shares of common stock, Series A-1 or Voting Series B Preferred Stock held by all holders of such shares as of the record date.

The existing Series A-1 shares currently can be traded on the PRO Securities alternative trading system (ATS) operated by PRO Securities, LLC. The PRO Securities ATS is powered by technology owned and licensed to it by Overstock’s majority owned subsidiary tZERO Group, which owns PRO Securities, LLC. The PRO Securities ATS is the same platform on which tZERO’s security tokens began to be resold among accredited investors earlier this year.

Five years ago, we set out to create a parallel universe: a legal, blockchain-based capital market. We’ve succeeded, said Overstock.com founder and CEO Patrick M. Byrne. The approximately 40,000 holders of the currently outstanding ≈37 million shares of Overstock will be issued a dividend of ≈3.7 million of these new digital shares to trade in that new capital market. Because the bundle of legal rights represented by each of these new A-1 shares is similar to the bundle of legal rights embodied in shares of our common stock (OSTK) that trades on NASDAQ, I might normally expect these blockchain-based A-1 shares to trade in rough approximation with OSTK. However, our legacy OSTK shares trade in a capital market with trading and settlement mechanisms about which I have long made my criticisms and doubts known to the public, whereas our new blockchain-based A-1 shares trade in a blockchain-based capital market which I believe is resistant to such dynamics. I cannot predict what kind of trading parity, if any, will emerge between the two. Perhaps arbitrageurs will notice and explore such matters, and in the process, punch a wormhole between the universe of legacy NMS and new universe of a blockchain capital market.  I am going to be as interested as anyone else to see what the result of that will be.

These new shares of Series A-1 to be issued in connection with the Dividend have not been, and are not required to be, registered under the Securities Act of 1933 or applicable state securities laws. Consequently, no secondary resales of such shares will occur until they become eligible for resales under Rule 144 under the Securities Act, or if another exemption from registration is available. The time period after which the Dividend shares will become eligible for Rule 144 varies depending on individual circumstances. In general, it is six months from the payment date for non-affiliate investors, subject to the applicable requirements and limitations of Rule 144. Once secondary resales are permitted, investors are expected to be able to trade shares of the Series A-1 on the PRO Securities ATS, operated by PRO Securities, through a brokerage account established with Dinosaur Financial Group, LLC. More details on that will be made available at a later date.

 Its earnings per share (EPS) expected to touch remained -109.20% for this year while earning per share for the next 5-years is expected to reach at 5.00%. OSTK has a gross margin of 19.10%.

 According to the most recent quarter its current ratio was 0.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of 29.90% from the mean of 20 days, 71.54% from mean of 50 days SMA and performed 38.10% from mean of 200 days price. Company’s performance for the week was 24.42%, 68.24% for month and YTD performance remained 68.48%.

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