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MadaLuxe Group Acquires Ippolita The luxury goods company said founder Ippolita Rostagno will remain at the brand’s helm.
EditorsJan 10, 2008
PR or P.U.?
Blogger Zac Bissonnette thinks something is foul about Bidz.com's decision to issue a press release announcing a small repurchase of 100,000 shares. On Bloggingstocks.com, he questions if the purpose of the press release was to create headlines that ultimately promote...
Blogger Zac Bissonnette thinks something is foul about Bidz.com's decision to issue a press release announcing a small repurchase of 100,000 shares. On Bloggingstocks.com, he questions if the purpose of the press release was to create headlines that ultimately promote the online auctioneer's stock.
His post cites Warren Buffett's well-known position on the matter of buybacks. The third richest man in the world publicly denounces executives who use corporate money to drive stock prices up.
According to the online auctioneer's Jan. 2 press release, more buybacks are likely to occur. Bidz.com Chairman and Chief Executive Officer David Zinberg says it's because the company is confident about its business model.
But Bissonnette cautions investors to check out information that is not being promoted to the public such as the frequent sale of the stock by the CEO.
Bidz.com issued another press release on Wednesday announcing the upgrade of its Web site with a new technology that has LiveBid capabilities. It also mentioned plans for a new retail site, Buyz.com.
Is the stock buyback connected to the online auctioneer's confidence in its new venture, or is it an attempt to generate capital for it? What's your opinion?
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