Overstock shares drop on shelf registration
Posted
Aug 21 2008, 02:31 PM
by
Kim Peterson
Rating:
Overstock.com shares are down nearly 6% today after the company filed paperwork to sell up to $500 million in debt securities, common stock and warrants. The company said it doesn't have current plans to raise money, but wants the paperwork filed in case it needs to.
Barron's points out that Overstock is spending more and more money to acquire customers. Analysts say that last quarter, its customer acquisition costs rose 37%. Overstock could have some challenges with customer loyalty.
Overstock's marketing costs 7.5% of sales, compared with 2.5% for Amazon, analysts say.
