JAT Capital Management, one of major holders of Overstock.com (NASDAQ:OSTK) shares, recently filed form 13D, disclosing "operational recommendations" that it had submitted to the company's board.
JAT, which owns just over 4.1M OSTK shares, or a 9.1% stake, has urged the board and management to develop "a business plan for the next 1/3/12/36 months, with financial objectives," as well as suggested changes to leadership's compensation structure "to reduce or eliminate cash compensation, and to emphasize stock option participation."
The fund also called for an overhaul of the company's communications strategy, seeking "near term guidance to be offered to establish financial guardrails," clearer messaging that "communicates the plan clearly, with action items and KPIs," and broadly pushing for a more transparent communication with "Wall Street and engagement on an ongoing basis to ensure expectations are aligned with likely outcomes."
Lastly, JAT recommends to "conduct an immediate strategic review of the Issuer’s non-core assets (most notably the Medici portfolio), including evaluation of a potential sale or spin-off of such assets."
The filing also mentions that JAT "may consider to seek Board representation to the extent the above recommendations have not been explored, pursued and executed satisfactorily."
Overstock has not issued a public response to the recommendations.
Shares of OSTK have lost nearly 13% YTD, compared to an over 14% gain for the S&P 500.