My runner-up for worst stock of 2011, Overstock.com (OSTK), staggered into 2012 over the weekend with some horrid news: it was forced to stave off imminent default on its bank obligations by forking over more of its scarce cash.
As white collar crime maven Sam Antar pointed out in his blog, the bad tidings, noted in a Form 8-K -- but, predictably, ignored by the Utah media -- were the subject of a spin campaign by the company to make it seem like positive news and not the disaster that it was. This lump of coal in the Overstock stocking leads me to wonder: Will 2012 be the year that Overstock finally slides into bankruptcy?
After all, had it not "renegotiated" its bank lending arrangements, Overstock - run by right-wing conspiracy theorist Patrick Byrne - had faced possible insolvency.
Overstock's desperate straits are reflected in the fact that despite the company's spin, U.S. Bank had actually not done very much "negotiating" at all.
Read the rest of the article at Seeking Alpha
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