Michael Stewart

Bidz.com: Inventory and Cash Flow Concerns

After reading all of the comments, I urge all of the longs in this stock to read my post again. One of the top fraud experts in the country laid out a 10 point test for inventory fraud detection and BIDZ had every identifiable marker. Investors need to focus on free cash flow, because net income is just an accounting concept. It is easy to manipulate net income (see Enron), but cash in the bank is verifiable. The indisputable fact is that BIDZ is burning cash faster and faster. All I can say is buyer beware on this one.