The second promotional round in favor of Local.com Corp. (NASDAQ:LOCM) started at noontime yesterday. Solely paid by the company, the promotional run is scheduled to continue for at least two more months.
When we received the first promotional email in support of LOCM last month, it failed to give LOCM stock a major boost. In fact, LOCM shares only gained 4% in value to $2.61 per share. Yesterday’s email made little difference, too. This time, LOCM rallied by 5.7%, closing the session at $2.21 per share on a volume of 312 thousand. Each email was worth $10,500.
Although both emails have managed to add some value to LOCM, their results are far from satisfactory, especially considering that the company’s stock has been doing better every now and then without any promotional support.
LOCM recently filed its third 10-Q form for 2011. The document which outlined the financial results of the company for the three-month period ended Sep. 30 contained:
- cash reserves in excess of $10 million;
- accounts receivable of $13 million;
- working capital surplus of $64K;
- $20.9 million in revenue as opposed to $20.5 million accumulated in Q3 2010;
- net loss of $4 million as compared to net income of $4.7 million a/o Sep. 30, 2010.
While coming up with a positive financial result for the next quarter is definitely a challenging task, its successful completion will do a much better job in pushing LOCM up on the charts than the ongoing advertising campaign.
