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Yes, Overstock is no longer just an ecommerce business, and hasn't been for a few years. I will note that part of the business has performed very well in 2020, and you could make the argument that Overstock is undervalued on that business alone in comparison to competitors like Wayfair.
However, the really interesting part of their business is in crypto and blockchain. On Jan. 25th, it was announced that Pelion Venture Parters would oversee Overstock's Medici Ventures - which is basically a venture capital arm that has investments in 18 blockchain companies.
Here's two reasons I think that this is important:
1. Pelion Venture Parters were early investors in multiple multi-billion dollar companies including Cloudflare and Domo. These guys know that they are doing.
2. Pelion will also become general partners in Medici Ventures. That is a good sign Pelion is confident enough that this will work out.
Now, let's take a look fintech company tZero, which Overstock owns a majority stake in. There a lot moving parts with this company, some of it I understand - and some it I admittedly do not. Here are two things I think are interesting (and understand).
1. They have a trading venue built on a blockchain that allows you to trade private securities as if you were trading a stock on a public market. The name tZero comes from the fact the platform allows you to buy a private security and settle within the same day (0 days). It traditionally takes weeks, so this is a huge advancement.
2. They have an app that allows you to trade crypto. One difference between the tZero app and Coinbase is that crypto you purchase on tZero is actually held in your personal wallet - which should make it safer, in theory.
Having an app is not that exciting, but it is when you consider that Coinbase is valued at $28 billion and Overstock is only valued at $3.3 billon. With Overstock, you get all of the other blockchain and crypto investments and tZero, plus you get the entire ecommerce business for less than an app (Coinbase).
I could be wrong about this and I'm not a finance expert by any means, but I'm bullish. Earnings are on Wednesday.
Well, you may get another chance to buy. Company posted stellar earnings and dropped like a stone - once again.
If this thing hits $50, it is going to be criminally undervalued.
Wow, ya, it is way down. Some of it may be due to leftover Patrick conspiracy fallout.
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