this conference call back fired. damn,its lookin ugly. stock has lost over 60% of its value in 2 days.
Yup, that stock had scam written all over it. If you are one of the "lucky" share holders don't be surprised if you get a nice invitation to participate in a class action law suit. http://biz.yahoo.com/ap/071127/bidz_call_citron.html?.v=1 P.S: forgive me for pointing this out, but even Stk_twidler had this one pegged as crap!
What I dont like is that this guy clearly has some power over these smallcap stocks and it seems like he is somewhat abusing it. He shorts the stocks at his discretion and then when the time is right he publishes the damning article? The company reported better than expected numbers a week ago, was profiled in IBD and Briefing.com, made 52 week highs monday morning and then boom this article gets published. Seems just a little too perfect and all hidden behind a "saving the little guy" facade. It doesnt take a genuis to suspect that other are in on it either.
Glad I got out at $17.75. I lost out on that last drive up - but at least I didn't take the splat on the way down.
Citron could have been long and short the stock, having a greater short position. They publish the article and dump the long stock into there own "news". I'm more annoyed with the IBD article. IBD is respectable and for them to be played by another news source... well it just annoys me. I'd sure like a response from IBD besides a sell arrow on the chart noting some flaw in t/a 6 months from now.
guys,don't blame anyone and certainly not IBD. this is all part of trading. no one knew this would happen. i feel bad for those that held.
It's possible of course. But it would be easy to prove and subject Citron to tremendous liability. On the other hand, a friend of a friend could have shorted it, if you know what i mean. Bottom line, Citron is in trouble if they publish false negative information that moves the stock. They know that. So it's likely correct and defensible. And its also likely that the story was leaked and a friend of a friend shorted it.
My trading history with BIDZ goes like this: I saw this getting pumped up in news letters and spam I get in email. I knew something was fishy. This was 2 months ago. Volume was very light. First order was 200 shares short at $13.75. Goes to $16+. I short 400. I get the hell out with a small profit and cover at $14 and change a week later. Earnings are good and the POS goes up and I'm glad I'm out. I keep it on the radar. I see $17, $18, f'n $22 yesterday. I don't chase I'm itching to short again. I see it coming down hard yesterday after it hits $22 in morning. I think its just profit taking. POS keeps falling. I research a bit and fing that Lemon article. Watch AH yesterday keep falling $15. Do I short, no, I watch from sideline because I'm a pussy afraid to get burned on a rebound. I watch this trade today like it was DNDN in the Spring. Tempted to catch the falling knife but resist after seeing it trade $11-$13.50 and back down. I have no intention of playing it at all now. Will be interesting to watch what happens tomorrow. At an open of $9 or so, It could make for a lucrative dead cat bounce, cover rally trade. There will be a lot of eyes on it. The fact that its REG SHO too, I wouldn't mess with it too much. I'm sorry for those longs burned on it into earnings and thinking it was full steam ahead into Christmas season and bigger revenues next quarter. All part of Wall St.'s game baiting in retail chasing the spike.
LOLLLLLLLLLLLLLLLLLLLLLL Just opened 4 emails from the pump and dump master: Take it for what its worth.... 11/27/07 at 7:00PMEST First of all... I own no position in BIDZ and I am not being compensated in any way for covering it. I am just doing this because I love the company and I believe it is about to have the BIGGEST SHORT SQUEEZE in history! Remember our Intermix (MIX) the owner of MySpace? After I picked it at $6.46 it was attacked by Stock Lemon and it fell to $3. MIX was later bought by NWS for $12 and if they remained public I am sure it would be worth over $100 today! Stock Lemon is making a HUGE mistake once again by attacking our BIDZ.com (BIDZ). Stock Lemon issued a report yesterday comparing BIDZ's inventory levels to NILE and OSTK, even though BIDZ's business is completely different than those companies. Stock Lemon created an innuendo that because BIDZ's days of revenues in inventory is now 140, which exceeds NILE's 34 and OSTK's 22... then there must be something wrong with their accounting!? WRONG! As you know... the DOLLAR is CRASHING every single day while GOLD PRICES are reaching new ALL TIME HIGHS! Why would BIDZ want to be sitting with all of their money in cash while they could be stocking up on inventory right now while gold prices are still cheap. Keep in mind... having $46.3MM in inventory is NOTHING for a company that projects to do $56-$58MM in revenues this quarter alone! If anything, it serves as an indication that BIDZ is hopeful that they will BEAT projections and SURPRISE Wall Street once again like they did last quarter! I made BIDZ my big pick on August 9th at $8.23 with a speculative rating of 1, my highest level of confidence. Yesterday, it hit a high of $22.50 for a gain of 173% from my pick price! After this Stock Lemon report came out, it finished yesterday down to $16.56... and then the stock was down another $4.67 today to $11.89 and is down to $9 in after hours trading! THIS IS A ONCE IN A LIFE TIME OPPORTUNITY! In order for Stock Lemon to make people even begin to consider the possibility that BIDZ's numbers are shady... they had to draw in the tie of a convicted felon from over 20 years ago that manages one of BIDZ's suppliers. BIDZ receives their jewelry from over 300 suppliers! Only a very small percentage comes from LA Jewelry... and their manager had legal problems all the way back in the early 1980's. This has ABSOLUTELY NOTHING to do with BIDZ. If BIDZ gets rid of LA Jewelry as a supplier today... they will have absolutely no problem replacing them with one of their hundreds of other suppliers in a second. Then Stock Lemon visited the offices of BIDZ's online jewelry appraiser AIG Labs and took pictures of their paper sign on their front door... trying to make that company look bad. THIS IS AN ABSOLUTE OUTRAGE! AIG Labs has nothing to do with the "retail" and "compare" prices listed on BIDZ auctions and WHO CARES if they have a paper sign on their door! Stock Lemon lied and said the CEO is paying himself 30,000 shares per month when he is receiving a salary of only $1 per year... because he BELIEVES in increasing the value of the company and CARES ABOUT the shareholders! Listen to BIDZ's conference call from after the close this evening... http://investors.bidz.com/MediaRegister.cfm?MediaID=28732 If you listen to the question and answer session... it is an absolute sin how these shorts tried desperately to do everything possible to make BIDZ's management sound bad. BIDZ's management is an easy target because they come from Moldova... and speak with an accent. As you can see with the stock down after hours... the shorts were quite successful at attacking the company... but BELIEVE ME... these SHORTS are going to PAY BIG TIME! I have been telling everybody I know for months that I will be doing all of my Christmas shopping online at BIDZ this year! This is the BEST INTERNET COMPANY I have discovered in my life! BIDZ.com is addicting... it could become bigger than AMZN one day! It provides a fun and exciting online shopping experience with immediate gratification! If you must compare BIDZ to NILE... BIDZ earned a LARGER net profit than NILE last quarter and yet BIDZ's market cap is only $220MM while NILE's profit is $1.23 BILLION! Even if you ignore the fact that BIDZ is growing faster and has higher profit margins than NILE and you value BIDZ based on NILE's price/sales ratio of 4.05, BIDZ would be trading at $28 based on $182MM in revenues expected this year and projected end of year 26.4MM shares outstanding. BIDZ's management came to this country from Moldova with nothing and started out with a pawn shop before building their company into the SECOND LARGEST ONLINE RETAILER OF JEWELRY... And now we have SHORT SELLERS trying DESPERATELY to destroy it... Stock Lemon's Part 2 of their report tomorrow is most likely going to focus on "sholt bidding". The planted shorts on the conference call stressed on the fact that in the T.V. section on BIDZ a LCD T.V. was bidding $11,000 when the exact same LCD T.V. was selling on other sites for $700. The fact of the matter is... it doesn't even matter! BIDZ doesnt make any money off this! BIDZ's T.V.'s are a trial from outside vendors. The only reason T.V.'s are listed right now is to attract a wider audience for their jewelry and possibly sell their own T.V.'s in the future. These shorts WILL get squeezed very badly and BURNED! UPDATE: 7:35PMEST Tiffany (TIF) has 180 days of revenue in inventory which is higher than BIDZ's 140 days! Believe me... BIDZ's 140 days of inventory is low and NILE is stupid for only having 32 days because GOLD PRICES ARE RISING RAPIDLY!
Looks like IBD has already completely disowned BIDZ. There's no mention of it in Wednesday's paper. Despite currently being #2 in the IBD 100, it wasn't a "Leader down in volume" in the Big Picture, and no word of it in Nasdaq Most Active. Like the uncle in prison... don't mention it and people will forget and stop feeling bad.