I know what you�re thinking: �Another pumper!� And yes, I am a pumper. But what I�m pumping isn�t what you�re used to seeing. Consider this:
� BIDZ IS NOT A PENNY STOCK. BIDZ priced its IPO in May at $8. It closed today at $7.91 (which means that it has outperformed all of the major indexes since then), and it has reached intraday highs in excess of $10 since its IPO.
� BIDZ IS NOT ON THE PINK SHEETS. BIDZ trades on the Nasdaq National Market and is currently covered by two analysts.
� BIDZ HAS REAL EARNINGS AND POSITIVE CASH FLOW. For the quarter ended June 30, 2007, BIDZ reported net income per share on a fully diluted basis of $0.12 (an 1,100% increase from the same period in 2006) and a net increase in cash of $1.4 million (an increase of over 23,600% from the prior period in 2006).
So what is BIDZ?
BIDZ runs a live-auction website located at www.bidz.com. The site primarily sells jewelry and other fashion accessories (such as watches and fashion eyewear), though they have recently branched out to televisions and other electronics. Although you�re probably thinking that BIDZ is just another eBay clone, there are some significant differences between BIDZ�s and EBAY�s sites that give BIDZ a key competitive edge:
� BIDZ RUNS ALL OF THE AUCTIONS ON THE SITE. BIDZ sells only new merchandise from its own inventory and the inventory of its authorized suppliers. No junk drawer wares, no Nigerian scams, no belligerent sellers. Just quality shopping experiences.
� ALL AUCTIONS ARE NO-RESERVE. Bids start at $1 and increase in $1 increments. This encourages bargain-hunters who get turned off by EBAY�s hidden reserves and �buy it now� non-auctions.
� ALL SALES ARE DONE IN TRUE �AUCTION-HOUSE STYLE.� On eBay, the prize goes not to the swift or the smart but to the guy who can get his bid in one second before the auction closes. At BIDZ, each auction continues for a minimum of 15 seconds after a bid is placed. This ensures that the sale goes to the highest bidder, making prices more customer-driven and efficient.
� AUCTIONS ARE SHORT. Most auctions are short-term, with many lasting less than an hour, and as a result the goods on the site are constantly being updated. This encourages frequent and repeat viewing of the site. There are none of those multiweek auctions that you see on eBay.