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PurchasePro (Nasdaq: PPRO) rose 1 to 14 7/8 Wednesday after the company announced a new chief operating officer.
PurchasePro, a Las Vegas, Nevada-based operator of business-to-business (B2B) online marketplaces, said Shawn McGhee will take over the COO duties from Christopher P. Carton. Carton, one of the company's founders, will remain president and a director, PurchasePro said.
McGhee comes to PurchasePro from Office Depot, Inc. (NYSE: ODP), where as president of North American operations, he led the company's e-commerce initiative and managed its US$4 billion supply chain. Before joining office Depot in 1997, McGhee, 37, spent 10 years at AutoZone.
Chairman and chief executive officer Charles Johnson Jr. said McGhee is one of the company's "most strategic hires."
"His vast experience in building an employee and technical infrastructure, coupled with his management experience and talents in guiding Office Depot's Internet initiative, will play a vital role in continuing our company's building process," Johnson said.
Lehman Brothers analysts repeated a buy recommendation on PurchasePro after the announcement, calling the company's new operating chief "top-notch."
"We view this as a strong hire for PurchasePro and think it bodes well for the stock," the analysts said. "McGhee's management experience at Office Depot and AutoZone makes him well suited to manage the blazing growth" at PurchasePro, the firm said.
PurchasePro reported a loss before charges of $4.7 million, or 7 cents per share, for the third quarter, on revenue of $17.3 million. The company expects to turn a profit in the fourth quarter.
While PurchasePro shares are below their 52-week high of 82 1/2, set last
December, the stock has rebounded from the single digits it saw last spring.
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