Bidz.com Provides Update On Its Stock Repurchase Program
Published July 1st, 2009
Bidz.com, Inc. (Nasdaq:BIDZ) announced that during the second quarter ended June 30, 2009, the Company repurchased approximately 714,000 shares of the Company’s outstanding common stock, which represents the allowable limit under the rules for volume limitations and share repurchases, for approximately $2.5 million, at an average price of $3.50. Since the inception of the plan at the end of 2007, the Company has repurchased a total of approximately 2.9 million shares of its outstanding common stock in the open market for a total of approximately $17.0 million, at an average price of $5.85 per share. After the Company retires all of the shares it has repurchased to date, the total number of issued and outstanding Company common stock will be approximately 22.5 million.
The repurchases have been funded from available working capital and the Company has no debt as of June 30, 2009. The Company intends to continue repurchasing shares in the open market under the stock repurchase program. Under its existing repurchase program, the Company has approximately $16.5 million still available for additional share repurchase in open market transactions, subject to market conditions, share price, and other considerations.
“With the price of our stock continuing to trade below what we believe to be a reasonable valuation, our Board of Directors believe that the continued aggressive repurchase of our Company’s shares is an excellent use of capital,” said, David Zinberg, the Company’s Chairman and Chief Executive Officer. “The combination of our liquidity, profitability and our ability to successfully execute our business strategy gives us confidence that the continued repurchase of our shares will help to deliver long-term shareholder value.”
About Bidz.com
Bidz.com, founded in 1998, is a leading online retailer of jewelry. Bidz offers its products through at live auction format as well as a fixed price online retail store, Buyz.com. Bidz.com’s auctions are also available in Arabic, German and Spanish. To learn more about Bidz.com visit its website at www.bidz.com.
