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  • robchadwick robchadwick Aug 11, 2009 5:58 AM Flag

    Basic Quesitons about BIDZ


    If I look at Alexa Ratings & Google Adplanner stats, it looks like they receive about 520k unique visitors per month in the US, 990k visitors per month worldwide.

    As of June 30th, they have $11m in Accounts Payable, $2m in accounts payable, $1.5m in cash

    Net income for the three months ending June 30th was 620k.

    They've cut their sales & marketing expenses by 35%.. According to their recently published stats, their new buyers are down 40% & their acquisition cost per new buyer is $55, which matches their GROSS margin per order.

    Their wholesale business DIED.. 500k vs 8.9million

    Management says relationships with Akamai (company that caches web pages regionally for faster performance & reliability), Bill Me Later (90 credit), and Aramex (logistics & shipping) as well as stocking more brand names will have a "positive impact on our future business results". Positive maybe, but material? - doubt it.

    They have a cheezy website & they sell Jewelry for christsakes.. It looks like their cost of sales/marketing are too high on the retail side & their cashflow came from their B2B, which is dead.

    Is that a typo or are their "Condensed Statements of Cash Flows (Unaudited)" really still unaudited for the Six Months Ended June 30, 2008? I can understand the Six months ended June 30 2009 but 2008? come on!

    Wholesale business dead, minor tweaks to their website & shipping, hoping for a Christmas miracle with a good deal they got from a liquidation.. web customer CPA is high & not going down, web traffic is going down per Alexa -- am I missing something?

    Seems like they have a lot of Jewelry, although maybe some problems with the valuation of that -- pending SEC investigation.

    So my assumption is that they liquidate at lower margins until macroeconomics pick up & along with that perhaps a B2B market -otherwise their web business just doesn't seem to stand well on it's own..

    It seems like the company has enough inventory to ride things out for a while so I think it could be a decent gamble in the $2s..

    Someone tell me what I'm missing..?



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