Youbet.com Stock Hemorrhage Slows
Updated: Friday, December 1, 2000 8:58 AM
Posted: Wednesday, November 29, 2000 5:18 PM
At least the bleeding slowed Thursday for Youbet.com stock. The California online pari-mutuel wagering company lost only 4.4% of its stock value to close at 69 cents per share. The day provided some respite to a two-day sell-off that cut Youbet.com's stock value by 40% since Monday.
An announcement Tuesday that the company president had resigned and jobs were being cut sparked the sell-off. Youbet.com is cutting 34 jobs, or 29% of its workforce, and it accepted the resignation of A.L. Frank, president and chief operating officer since February. The price dropped 13% by the end of trading Tuesday and another 28% when the market closed Wednesday. Youbet.com's stock has been as high as $7.38 during the past year.
Trading was still heavy Thursday at 406,300 shares. The stock's 100-day average trading volume is 68,930 shares, according to Bloomberg.
Youbet.com reported a $3.9 million loss during the third quarter ending Sept. 30 and a $3.4 million loss, or a loss of 55 cents per share, for the first nine months of the year. The company is carrying an accumulated deficit of $65.7 million.
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