December 29, 1999, as the world is ready to indulge in the millennial celebration of more than 600 value American workers face bleak prospects. Price America announced plans to lay off 47% of its employees. Less than a month before, Value America started the holiday shopping season, replacing its CEO, Tom Morgan, and the removal of its founder, Craig Winn, the active role of the board of directors. Investors reacted quickly to this negative news, and the stock price America dropped 12%, to close at $ 6.0313 on NASDAQ that day. This was in sharp contrast to an intraday high of $ 74.25 and the closing price of $ 55.1875 on April 8, 1999, when the company went public. This represents a decline in market value from a peak of $ 3.2 billion to $ 262 million in less than eight months. "Hide
by Paul W. Farris, Nikhil Nath, Richard Johnson Source: Darden School of Business 14 pages. Publication Date: February 4, 2000. Prod. #: UV2901-PDF-ENG
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