Stock Alert for Local.com Corp. (LOCM) " />

Stock Alert for Local.com Corp. (LOCM)

Local.com 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 Local.com 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 Spreebird.com, rich media ads via Rovion.com, and real-time product inventory information from more than 70,000 retail locations nationwide via Krillion.com.

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: Reuters.com, 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 Local.com 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.

“Local.com, 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.

Source: http://phx.corporate-ir.net/phoenix.zhtml?c=181515&p=irol-news&nyo=0

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.

Source: http://phx.corporate-ir.net/phoenix.zhtml?c=181515&p=irol-newsArticle&ID=1592804&highlight=

Financial Strength (24-Oct-2011)

Company

Industry

Sector

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: Reuters.com, SEC Filings.

Technical Analysis

Source: http://stockcharts.com

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
Local.com Corp. LOCM 2.68 58.96M n/a 89.33 0.74 0.59

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Leave a Reply

Your email address will not be published. Required fields are marked *