Stock Alert for Corp. (LOCM) " />

Stock Alert for Corp. (LOCM) Corp. (NASDAQ: LOCM) is an online local media company that enables brick-and-mortar businesses to connect with online customers using a variety of digital marketing products. The Company reaches more than 25 million consumers each month on the flagship Web site, approximately 1,500 regional media sites and more than 100,000 geo-category Web sites. LOCM distributes daily deals to hundreds of thousands of email subscribers in 14 markets via, rich media ads via, and real-time product inventory information from more than 70,000 retail locations nationwide via

Share Statistics (24-Oct-11) FY2009 FY2010 % Chg Q22010 Q22011 % Chg
Symbol LOCM Revenue, $Mn 56.28 84.14 49.5% 23.00 15.58 -32.3%
Current price $2.69 Gross marg. 39.7% 44.7% 12.6% 42.7% 30.6% -28.3%
52wk Range: $1.99-$7.25 Oper. margin 4.4% -36.8%
Avg Vol (3m): 278,042 Net margin 11.1% 5.0% -55.0% 5.3% -34.7% -754.7%
Market Cap. 59.17M
Shares Outstanding 22.00M EPS, $ -0.41 0.25 -161.0% 0.07 -0.25 -457.1%

Source:, SEC Filings.

Investment Highlights

Shares of LOCM have gained 6.7% in the last five days and 7.9% in the last month.  Year-to-date, the stock is down 39.4%.

The Irvine-Calif.-based local search provider last week announced it has been awarded patent number 8,032,427 by the U.S. Patent and Trademark Office covering a system for providing localized shopping information.

The patent describes a system by which consumers are provided with online information for specific products sold by local retailers using location-based information to determine relevance. The patented system also provides for the display of relevant advertising along with the sought-after local shopping information.

Heath Clarke, LOCM chairman and CEO, commented in the release, “Consumers are increasingly using mobile devices and apps to research products that are ultimately purchased at brick-and-mortar retailers. As a result of this, we believe that location-based services will play a growing role in connecting retailers with ready-to-buy consumers who are searching for those products.  We believe this new patent, acquired as part of our acquisition of Krillion, provides with important new intellectual property in this space.”

Also recently, LOCM announced it was ranked 191st on Deloitte’s Technology Fast 500(TM) ranking of the 500 fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America.

“, like all 2011 Technology Fast 500(TM) companies, has excelled in fostering innovation and channeling it into spectacular growth — against the backdrop of one of the most challenging economies in history,” stated Eric Openshaw, vice chairman and U.S. technology, media and telecommunications leader, Deloitte LLP.


Financial Summary

LOCM posted revenue of $15.6 million for the second quarter of 2011, down 7% from $16.8 million in the first quarter of 2011.

The Company recorded an adjusted net loss of $1.9 million, or ($0.09) per diluted share, for the quarter, compared to an adjusted net income of $8K, or $0.00 per diluted share, for the prior-year quarter.  Adjusted Net Income (Loss) is defined as net income (loss) excluding: provision for income taxes; interest and other income (expense), net; depreciation; amortization; stock-based compensation charges; gain or loss on warrant revaluation; and non-recurring items.

On June 30, 2011, LOCM’s cash balance was $13.5 million. Cash provided by operating activities of approximately $700K during the second quarter 2011 was offset by $6.4 million cash used for acquisitions and the purchase of intangible assets and $1.0 million used for capital expenditures. The Company had no debt during the second quarter 2011.

LOCM expects to post revenue of about $21.0 million in the third quarter of 2011. Due to limited monetization data from the new blend of ad partners during the third quarter 2011, the Company is not providing specific adjusted net income (loss) guidance for the third quarter of 2011. However, adjusted net loss for the third quarter 2011 is expected to be lower than the $1.9 million adjusted net loss reported for the second quarter of 2011.


Financial Strength (24-Oct-2011)




S&P 500

Quick Ratio (MRQ) 2.10 2.00 0.69
Current Ratio (MRQ) 2.08 2.69 2.56 1.07
LT Debt to Equity (MRQ) 0.00 9.36 11.38 101.20
Total Debt to Equity (MRQ) 0.00 15.79 20.36 140.94
Interest Coverage (TTM) 0.90 0.92 1.09 25.12

Source:, SEC Filings.

Technical Analysis


LOCM is presently near its upper Bollinger Band. This suggests that it is at a high level relative to recent action.

The MACD for LOCM currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

Comparative Analysis

Company Name Ticker Price per Mrkt. Cap. P/E P/S
Oct24-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
Google Inc. GOOG 599.03 193.42B 16.30 13.70 6.62 5.41
SuperMedia Inc. SPMD 1.58 24.50M n/a n/a 0.01 0.01
Internet Information Providers Median       20.13 n/a 1.45 n/a Corp. LOCM 2.68 58.96M n/a 89.33 0.74 0.59

Source: Thomson Financial

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