www.smallcapnetwork.com/...via/14/article/view/p/mid/1/id/207/Local.com Corporation (NASDAQ:LOCM) Surprises the Short Sellers
When Scrambling to Find a Low Buy In Point Becomes a Task.
By Dennis Askew
Published: September 8, 2011 10:37:40 AM PDT
Local.com Corporation (NASDAQ:LOCM) was trading in the $3.50 range at the beginning of August and after the broader market carnage, found itself in the $2.10 range early on, a loss of 40%.
But August wasn’t typical for the ‘local’ internet advertiser as shares sprung back towards $3 and with a couple of small dips and spikes stretched into this month; the current price trading in the $2.85 range, a gain of 35% in a month since its early August fall.
In an 8-K filing with SEC yesterday the Company noted it had issued a press release titled "Local.com Raises Third Quarter 2011 Guidance" on Tuesday the 6th.
The press release itself went on to say the updated financial guidance for Q3 ’11 was: Revenue; approximately $21.5 million or 38% higher than Q2 ’11 and Adjusted Net Loss; was approximately $1.5 million as compared to $1.9 million for Q2 ’11.
The company also expects to generate positive cash flow from operations during Q3. Higher sequential revenues, smaller losses, and plus-territory cash flow… quite a change in performance and a short seller’s nightmare.
The short/float ratio at Local.com Corporation (NASDAQ:LOCM) is 11.39% today and all that ‘good news’ is bound to drive the stock higher. Buy in prices to cover a short at a profit will shrink considerably as the stock rebounds towards $3.
In the middle of August, the Company appointed Lori Chavez as its new VP of Marketing (Congratulations) and the news this week will really give her some fresh incentives to sell Local.com Corporation (NASDAQ:LOCM) to clients and advertisers.
I’d venture to say that all marketing directors coming on board at publicly traded companies wished they had such positive news during their first months’ tenure.
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