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| Author | Topic: Value America (VUSA) |
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dinosaur56 |
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InvestorGuide Weekly Administrator |
E-tailer Value America filed for Chapter 11 bankruptcy, but unlike other e-tailers that have fallen off the map, this one is buying time to change its business model. (source: Forbes) http://www.forbes.com/tool/html/00/aug/0818/feat.htm |
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InvestorGuide Daily Administrator |
In brief: - Struggling online retailer Value America filed for Chapter 11 bankruptcy protection and shut down its Internet retail site, in addition to laying off 185 people, or about 46% of its work force. |
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InvestorGuide Daily Administrator |
Value America, Buy.com and Office Depot settled claims from the FTC that all three companies did not fairly disclose all the terms of computer rebate deals. (source: Washington Post) http://washingtonpost.com/wp-dyn/articles/A19565-2000Jun29.html |
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bobcobb |
Here is an interesting headline I just saw... "Value America has received an equity investment of $90 million from two separate groups, putting the troubled e-tailer on track to reach profitability in 2002." The article does make it sound like some changes have occurred, but why should we believe that a cash infusion will ever make the company profitable? That's faulty logic. The cash infusion might allow it to stay around long enough that it has a chance to become profitable... that's all it can possibly do. |
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bobcobb |
who in the world is still buying shares in this company? The stock is UP since its site re-design. Normally a re-design would be good, but the system crashed on the first day it was back online. I wouldn't trust my investment with them, nor would I trust thwm with my consumer dollars. A couple of site reviewers gave it high marks. I wonder how much they had to be paid. Lets just hope they weren't paid in stock! ![]() |
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Earnings Administrator |
Value America (VUSA): -$1.02 reported, -$0.90 expected, $1.26 same q last year. |
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bobcobb |
Earnings come out tomorrow. If you still hold this stock you had better be ready to sell it. |
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slurm |
Another explanation is that they're just plain messing up on all fronts, and they've just decided to say the problems are that they're getting more business than they can handle because that sounds better than admitting how big the problems are. |
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humanity |
ValueAmerica says that the reason for the cutbacks is due to the fact that they couldn't handle the total volume of customers. If that's the case, why would you cut your workforce? So i'm guessing it's one of two things - either their technology couldn't cut it, or there is a serious flaw with their upper management and business plan. I'm willing to bet on the latter. |
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bobcobb |
I read an article that listed them as one of the companies for which this season was a make or break season. It looks like it was they are broken. They were an early mover, but they never seemed to distinguish themselves or make any major agreements with big players which could have helped get their name out. They should probably just sell their customer base to amazon or someone, cut their losses and go work for another online retailer (with a great knowledge now of what doesn't work) bob |
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newsman |
Value America today said its fourth-quarter revenue will be 6 percent to 9 percent below estimates. Value America plans to cut 47 percent of its workforce and has created a committee to explore "alternatives." |
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JHirsch |
Value America is a company that got into the online retailing relatively early, but has yet to do very well. It is promoted heavily in Charlottesville for sure (I live here) and in Virginia, but i doubt whether many others have heard of or used it. I have also heard from someone who works there that people have called in more orders than they have sent over the internet. The online retailer's Web site sells over 1,000 brands of discount-priced products in three categories: technology(computers, peripherals, software), office equipment, and consumer goods. The site offers multimedia presentations on its merchandise, and its personal shopper feature tracks receipts, warranties, important dates, and discounts. Value America is considering plans to charge a fee for its now-free memberships. I am not sure if this would be a good idea considering it hasn't yet developed a loyal internet following. Many of its products are offered at similar prices, but without forcing customers to pay a membership fee. Discuss... |
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