Overstock.com 2006 Annual Report Download - page 40

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PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock is traded on the Nasdaq Global Market under the symbol "OSTK." Prior to May 30, 2002, there was no public
market for our common stock. The following table sets forth, for the periods indicated, the high and low sales prices per share for our
common stock as reported by Nasdaq (1).
Common
Stock Price
High Low
Year Ended December 31, 2005
First Quarter 70.35 41.50
Second Quarter 46.25 33.62
Third Quarter 48.65 35.60
Fourth Quarter 43.40 28.02
Year Ended December 31, 2006
First Quarter 35.02 21.60
Second Quarter 30.63 19.00
Third Quarter 22.93 16.03
Fourth Quarter 19.09 13.40
(1) Prices shown above are sales prices. In prior reports we reported closing prices.
As of March 1, 2007, there were approximately 240 holders of record of our common stock. Because many of our shares of
common stock are held by brokers and other institutions on behalf of shareholders, we are unable to estimate the total number of
shareholders represented by these record holders.
We have never declared or paid any cash dividends on our common stock. We currently intend to retain our earnings for future
growth and do not anticipate paying any cash dividends in the foreseeable future. Any future determination to pay dividends will be at
the discretion of our board of directors and will depend on our results of operations, financial conditions, contractual and legal
restrictions and other factors the board deems relevant. Our Loan and Security Agreement with Wells Fargo Retail Finance, LLC
dated December 12, 2005 prohibits us from paying dividends without the consent of the lender.
During January 2005, the Board of Directors authorized a stock repurchase program under which the Company was authorized to
repurchase up to $50.0 million of its common stock through December 31, 2007. On April 26, 2005, the Board of Directors increased
the amount of the share repurchase program to $100.0 million. Additionally, on June 14, 2005, the Board of Directors authorized an
amendment of its three-year stock repurchase program to include the repurchase of its Convertible Senior Notes.
During 2005, we entered into several purchased call options, pursuant to which we could have been required to purchase up to
1.3 million shares of its common stock at certain settlement dates during the quarter ended June 30, 2005. In connection with these
repurchase transactions; we paid approximately $47.5 million, which was recorded in shareholders' equity in the consolidated balance
sheet.
At our option, the purchased call options were settled in cash or stock, based on the market price of our common stock on the
date of the settlement. Upon settlement, we either had our capital investment returned with a premium or received shares of our
common stock, depending, respectively, on whether the market price of our common stock was above or below a pre-determined price
agreed in connection with each such transaction.
39