CHAMPION CEO OF YOUBET.COM.Byline: Evan Pondel Staff Writer
WOODLAND HILLS - Youbet.com Inc. named Charles Champion as chief executive officer Thursday, a move the newly appointed executive deemed ``a natural progression'' for the online wagering company.
For more than a year, Youbet's stock has teetered around the minimum $1 requirement to continue trading on the Nasdaq market. Saddled by consecutive quarters of losses and a bevy bevy
a flock of birds. of management changes, the Woodland Hills-based company continues to trade below $1.
``The online wagering industry has virtually no barriers to entry. And this company (Youbet) is no exception. It's a penny stock Penny Stock
A stock that sells for less than $1 a share but may also rise to as much as $10/share as a result of heavy promotion. All penny stocks are traded OTC or on the pink sheets.
Penny stocks are highly speculative and risky. and probably will be delisted in the near future,'' said T.K. MacKay, analyst with Morningstar in Chicago.
Champion, 48, succeeds David Marshall David Marshall may refer to:
In a letter addressed to shareholders, Marshall said, ``With the company stabilized and nearing profitability ... it is right to move Chuck Champion into the chief executive position. He has learned the industry, knows and is respected by the key players ...''
But MacKay said the company has quite a few laps to make up before it can enjoy profitability. In the second quarter that ended June 30, the company reported a net loss of $2.58 million, compared with a loss of $3.25 in the same period a year ago.
``And it looks like it's been a long time since Youbet was cash flow- positive, if they ever were in the first place,'' MacKay said.
Visiting a race track only handful of times before his start at Youbet, most of Champion's professional career has involved newspaper publishing. Prior to Youbet, Champion was president and publisher of Access Magazine, an Internet publication. He also worked in circulation for Philadelphia Newspapers Inc.
Bob Hall, publisher of Philadelphia Newspapers Inc., said he remembers hiring Champion, although he didn't feel comfortable commenting on his expertise.
Aside from constant shifts in management, another detriment to Youbet's comeback is the very industry the company attempts to recreate online. MacKay said it's difficult to depict the feel and excitement of gambling via a computer monitor.
``This is not the Las Vegas strip The Las Vegas Strip (also known as The Strip) is a 4 mi (6.7 km) section of Las Vegas Boulevard South, most of which has been designated an All-American Road. here,'' he said. ``In fact, far from it.''
Youbet's attempt to prove it's viability isn't new.
In October 1999, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. police served a search warrant at Youbet.com's former West L.A. offices. The investigation, spearheaded by the Los Angeles County District Attorney's Office, probed Youbet to see if it was violating the state's anti-bookmaking laws.
Ron Luniewski, a former chief operating officer Chief Operating Officer (COO)
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Youbet, said in a previous interview that the investigation was unsubstantiated because authorities didn't realize Youbet was a publicly traded company publicly traded company
A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. with wagering licensed by the state of Pennsylvania. Luniewski no longer works for Youbet.
In February, the California Horse Racing horse racing, trials of speed involving two or more horses. It includes races among harnessed horses with one of two particular gaits, among saddled Thoroughbreds (or, less frequently, quarterhorses) on a flat track, or among saddled horses over a turf course with Board granted a license to Youbet. The license entitles Youbet to accept online wagers from California residents.
Youbet shares rose 2 cents to close at 58 cents Thursday on the Nasdaq market.
(color) Chuck Champion was named CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Youbet.com online gaming See gaming. firm on Thursday. In February, the California Horse Racing Board granted a license to Youbet that allows the company to accept online wagers from California residents.
David Sprague/Staff Photographer