Market Overview

Tech Specialist: Overstock An Attractive Takeout Target, Way To Play Bitcoin

Tech Specialist: Overstock An Attractive Takeout Target, Way To Play Bitcoin, Inc. (NASDAQ: OSTK) is largely overlooked by Wall Street, but that doesn’t mean it’s escaped notice from anyone else.

“It’s a very good fit for a number of traditional brick-and-mortar retailers,” Dan Forman, technology sector specialist at Maxim Group, said on Benzinga’s PreMarket Prep radio show. “Overstock could be a potential target for a Bed Bath & Beyond Inc. (NASDAQ: BBBY) if somebody like Bed Bath wanted to boost their e-commerce business.”

The online retail firm is viewed attractive for both its market position and relatively low price. The company trades at a discount to J C Penney Company Inc (NYSE: JCP).

The Blockchain Trade

At the same time, it might appeal to bitcoin traders. The firm’s wholly-owned subsidiary, Medici Ventures, actively invests in blockchain and operates a trading platform based on the technology.

Although Overstock executives said on their August conference call that they may spin off the division, which has posted enough consistent losses to be considered a risk, the asset currently renders Overstock a derivative way to play the bitcoin theme.

A Time For New Highs?

Altogether, Overstock’s fundamentals merit Forman’s high expectations.

“We still have a number of catalysts in front of us for Overstock, so the recent move up, while it looks like the stock arguably could be expended on a short-term basis, I think that we’re likely to meet new highs,” he said.

Forman has been following Overstock since its earnings events catalyzed a positive run. The stock trading is up 48.3 percent since Aug. 4, and it opened Thursday at $24.40.

Related Links:

The Major Services And Retailers That Accept Bitcoin

Overstock, Free Processing And Oppressive Regulations Highlight Bitcoin’s Week

PreMarket Prep is a daily morning show about short term trading ideas and technical setups. It airs live from 8–9 a.m. ET here, and the podcast is here.



Related Articles (GBTC)

View Comments and Join the Discussion!

Posted-In: Benzinga PreMarket PrepCryptocurrency Forex Top Stories Markets Tech Interview General Best of Benzinga