Graphically speaking, Local.com Corp. (NASDAQ:LOCM) is not enjoying a phenomenal chart run. On the contrary, the last two months saw LOCM stock hit new 52-week lows, which is why the company has now approached a paid promoter to pump its stock.
According to the latest promotional agreement, Local.com Corp. will be paying $10,500 per month for investor relations services for a period of four months, i.e $42,000 altogether. Moreover, the agreement is subject to renewal as long as CEO Heath Clarke grants his written approval. So, investors willing to trade LOCM shares had better prepare for a long ride.
Local.com Corporation pretends to be a leading online media enterprise specialized in connecting businesses with customers using a number of digital marketing solutions. Yesterday, the company proudly announced that the U.S. Patent and Trade mark Office had granted it a patent for its system for providing localized shopping information.
LOCM closed the second calendar quarter of 2011 with:
- $13.4 million in cash;
- working capital surplus of $13.5 million;
- $15.5 million in revenue and a quarterly loss of $5.4 million.
Unless LOCM manages to buck the negative income trend, it will most probably continue to depreciate in value, not to mention the risk of being delisted from the NASDAQ in the end. Of course, it will take quite a while before such a scenario materializes, which means that the company has plenty of time to take appropriate measures.
