Overstock.com 2009 Annual Report Download - page 43

Table of Contents
Risks Relating to the Securities Markets and Ownership of Our Securities
The price of our securities may be volatile and you may lose all or a part of your investment.
The market price of our common stock historically has been subject to significant fluctuations. These fluctuations could continue. It is possible that in
future periods our results of operations may be below the expectations of public market analysts and investors. If this occurs, the market price of our securities
may decline. Some of the factors that could affect the market price of our securities are as follows:
changes in securities analysts' recommendations or estimates of our financial performance or publication of research reports by analysts;
changes in market valuations of similar companies;
announcements by us or our competitors of significant contracts, acquisitions, commercial relationships, joint ventures or capital commitments;
general market conditions;
actual or anticipated fluctuations in our operating results;
intellectual property or litigation developments;
changes in our management team;
economic factors unrelated to our performance; and
our issuance of additional shares of stock or other securities.
In addition, the securities markets have experienced significant price and trading volume fluctuations. These broad market fluctuations may adversely
affect the trading price of our securities. In the past, following periods of volatility in the market price of a public company's securities, securities class action
litigation has often been instituted against that company. Such litigation could result in substantial cost and a diversion of management's attention and
resources.
Sales by our significant stockholders could have an adverse effect on the market price of our stock.
Several of our stockholders own significant portions of our common stock. If one or more of stockholders were to sell all or a portion of their holdings of
our common stock, the market price of our common stock could be negatively impacted. The effect of such sales, or of significant portions of our stock being
offered or made available for sale, could result in strong downward pressure on our stock price. Investors should be aware that they could experience
significant short-term volatility in our stock if such stockholders decide to sell all or a portion of their holdings of our common stock at once or within a short
period of time. In addition, the transfer of ownership of 50% or more of our outstanding shares within a three year period could adversely affect our ability to
use our net operating losses to offset future taxable net income.
Our quarterly operating results are volatile and may adversely affect the market price of our securities.
Our future revenues and operating results are likely to vary significantly from quarter to quarter due to a number of factors, many of which are outside
our control, and any of which could harm our business. As a result, we believe that quarterly comparisons of our operating results are not necessarily
meaningful and that you should not rely on the results of one quarter as an indication of our future performance. In addition to the other risk factors described
in this report, additional factors that have caused and/or could cause our quarterly operating results to fluctuate and in turn affect the market price of our
securities include:
increases in the cost of advertising;
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