Retail
Bidz.Com.. When Massive Sales Aren't Enough (BIDZ)
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Bidz.com (NASDAQ:BIDZ) is seeing shares battered and tattered in early trading. At one point shares were down over 20%. The online jewelry auctioneer said that sales during the Thanksgiving weekend rose a whopping 78% over last year.
The company had recently announced third quarter revenue of $40.1 million, a 48% increase compared with $27.1 million a year ago, and it reaffirmed its guidance for Q4, fiscal 2007, and 2008. In short, that is not raised guidance. Here is the guidance:
In short, this is a bit more clear now that it isn’t processing the earnings. Its share count is going to grow and its tax rates are going up. Considering this one just appeared on the #2 spot on the IBD 100 this weekend, this is going to have some pretty infuriated traders behind it.
Shares are down some 19% at $13.31 today in early trading. The 52-week trading range is $4.90 to $22.50, and shares are now down more than one-third from yesterday’s early highs.
If this one falls too much more, we’ll be looking at it for our own "10 Stocks under $10" newsletter.
Jon C. Ogg
November 27, 2007
Jon Ogg produces the 24/7 Wall St. Special Situation Investing Newsletter; he does not own securities in the companies he covers.
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