stock ticker: BIDZ

Bidz.com is an online auction provider of off price jewelry and second tier accessories. What makes their model unique is that everything is sold via auction. Yet, the auctions are not third party auctions as facilitated by Ebay, rather they are auctions that are controlled by the company. In this report, Citron will expose what we believe to be many red flags at BIDZ . Citron will make a few comparisons to previous reports written on other companies as the issues at BIDZ seem to closely mirror issues we have discussed in the past.

BIDZ most closely reminds Citron of Medifast (Nasdaq:MED), which is down 70% since Citron Research first reported on it. Medifast became a “me too” company to Nutrisystems, which at the time was the darling of the market. Yet, the company was not producing the same cash flow to the darling to which it wants to be compared. (more…)