Over the last few years, the market has been gripped by volatility like never before. Many stocks that had never seen extreme moves previously, were soon gripped by huge rises and even steeper declines. This turbulence wasn’t new to Overstock (NASDAQ:OSTK) though, with a beta of 3.7 – giving shareholders exposure to some of the greatest volatility the market has to offer.
My thesis on Overstock is bullish following the fall in stock price this year. I am largely neutral on the e-commerce business at this time with Overstock’s margins getting squeezed as sales decline and this is going to remain the case for the foreseeable future. It’s the overlooked Medici Ventures Fund and in particular, holdings Bitt and tZERO, that make me bullish with the belief they will generate lucrative exit opportunities for Overstock further down the line.