Bargain shopping is normally a simple plan when you scan for penny stocks that fail to meet the Nasdaq requirements. Such was the case with online retail jewelers BIDZ.com Inc. (BIDZ) who got crushed in their greeting to the OTC Markets last week. Trolling for those red tag sales that Nasdaq investors lose faith in, traders waiting for BIDZ stock to enter the gladiator arena of the OTC took advantage of getting some cheapies on Tuesday, November 13, 2012. Up as much as 151% since then, another 18% from its current price could be realized if the merger with Glendon Group ever actually happens.
Our Next Pick Is Coming Soon! Click HERE To Make Sure You Don’t Miss Any Of Our Breaking Alerts!
BIDZ Stock Chart
Market Cap: 12.06M
Close: 0.659, up 0.0592 (9.87%)
Dollar Volume: $34,538
Average Trade Size: 1,871
Issued and Outstanding: 18,299,992
Looking for Hot Penny Stocks?
Click here and get Our Stock Picks FREE
Volume on Bidz.com’s common stock is relatively small, especially since the float is under 8 million. The highest trading session this year occurred when the Company announced an Agreement and Plan of Merger whereby Glendon Group, Inc., a Delaware corporation, would merge with and into Bidz.com surviving as a wholly-owned subsidiary. The deal was arranged to take the Company private which would allow shareholders the right to receive $0.78 per share in cash.
With no merger finalized, Bidz has now taken its voice to the Delaware Chancery Court. Th Company hopes their legal efforts requesting expedited proceedings will twist the arm of Glendon Group to close the Merger. They are also hoping it will compel Weston Capital Management LLC, and its affiliated fund, to honor their joint and several equity commitment and guarantee obligations entered into in connection with the Merger Agreement by funding sufficient capital to complete the Merger.
Regardless, merger or not, business continues as usual as the holiday season has begun. Further proof that they aren’t going to close up shop is their recent move to a new 50,000 sqft office and warehouse in Redondo Beach, California which has the personal guarantees of Company CEO, David Zinberg and his sister, Marina Zinberg. Although revenues have fallen off compared to last year, $13.50 million and $44.04 million for the three and nine months ended September 30, 2012, respectively, versus $18.73 million and $60.15 million for the same periods the year prior, respectively, there is still hope.
About BIDZ Stock
Bidz.com, Inc. operates through their websites, www.bidz.com and www.buyz.com, for the purpose of selling merchandise, utilizing our unique sales auction and fixed price platforms, as well as www.modnique.com for online retailing of apparel, beauty, and other fashion merchandise.
Last 5 Trading Sessions:
Click here to view the SEC filings for BIDZ.
Bottom Line: If the merger agreement is finalized, BIDZ could finally remove itself from penny stock classification when they go private. With declining revenues and a legal effort to force the merger to proceed, any further negative news could send BIDZ stock right back down to the 20’s for some flipping.
Here is your opportunity to subscribe to the Most Read Penny Stock Newsletter
If You Can’t Make Money With Us, You Shouldn’t Be Trading Penny Stocks
(We are 100% Anti-Spam and will never rent or sell your information)Share