3SOF

I noticed LOCM before anybody posted it on this board but I really think we should point out these high percentage gainers that go up on high volume.  Whenever the stock goes up on high volume it ALWAYS goes up the next day. There are so many examples but the exit points are obvious when the volume falls off the table. For example with LOCM 99.9% chance it will be up tomorrow because of the high volume today. Anyway my point is as investors we should point these stocks out and ride the wave higher. I think this is a good strategy for great gains.

not going to sell until I see more sellers.............

Quote from: WallStreetnBio on July 02, 2007, 01:46:32 PM
I noticed LOCM before anybody posted it on this board but I really think we should point out these high percentage gainers that go up on high volume.  Whenever the stock goes up on high volume it ALWAYS goes up the next day. There are so many examples but the exit points are obvious when the volume falls off the table. For example with LOCM 99.9% chance it will be up tomorrow because of the high volume today. Anyway my point is as investors we should point these stocks out and ride the wave higher. I think this is a good strategy for great gains.

i am not an investor anymore............. i am a trader..........

i dont care what LOCM does.........
.............



check out OMTR........

WOW! it just traded twice the shares outstanding. I didn't think that was possible. I think were seeing a lot of naked shorts out there getting burned over and over again.  With the volume this big this stock could be up another 150% by the end of the week.

good news from CEO

BANGALORE, July 2 (Reuters) - U.S.-based Web search services provider Local.com (LOCM.O: Quote, Profile, Research) is an acquisition candidate for a bunch of companies, its chief executive said in an interview.

CEO Heath Clarke said yellow page, newspaper publishers and database aggregators have approached the company.

(Reporting by John Tilak in Bangalore)

((Editing by Vinu Pilakkott; Reuters Messaging: john.tilak.reuters.com@reuters.net; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800)) Keywords: LOCALDOTCOM SHARES/CEO

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nWNA1420

http://www.reuters.com/article/technology-media-telco-SP/idUSWNA142020070702

no wonder so many people jumping in........

Yep...let the speculation drive this puppy.

The stock just dropped .40 after they said something on CNBC about it. I really think there are a ton of naked shorts. They just keep selling stock that doesn't exist. What happens when they have to cover and buy the real stock? I think LOCM will have a couple more 50% days up this week.

HOLYYYYYYYYYYYY F>..................... WTH happen?

holding this stock give u heartattack..........

Quote from: WallStreetnBio on July 02, 2007, 01:46:32 PM
I noticed LOCM before anybody posted it on this board

If that was the case , you should have posted an Alert  

I only became interested because of Kslifka's creation of the thread.
"Which he deserves another round of Applaud"!!!!

Quote from: setravis on July 02, 2007, 03:12:55 PM

Quote from: WallStreetnBio on July 02, 2007, 01:46:32 PM
I noticed LOCM before anybody posted it on this board

If that was the case , you should have posted an Alert  

I know I'm still learning. You guys think naked shorts are hitting this hard right now?

Quite the sell-off/shake-out...shall we say price drop at the end of the day.


Ended up with a black candle...but price did finish above the 38.2% fib retracement level.

I surely don't believe LOCM is done....unless bad news hits...I guess.

Local.com's Patent Push
Ruthie Ackerman, 07.02.07, 4:15 PM ET

Sometimes it pays to stay local.

On Monday search engine Local.com's (nasdaq: LOCM - news - people ) shares rocketed almost 70% Monday after it announced received a patent for the technology it uses that responds to directory assistance inquiries with voice-enabled and text-messaged systems. The patent also includes a referral system which monetizes local searches.

The Irvine, Calif.-based search engine offers local search results and advertising to 10 million visitors a month. The site's mobile service, Local Mobile, sends search results directly to cellular phones and devices.

Shares shot up 69.4%, or $4.80, to $11.72 on Monday following the announcement.

Local.com received a patent for technology that provides businesses with pay-per-click or pay-per-call advertising using 411 and wireless messaging systems.

Heath Clarke, chief executive of Local.com, said that the patent gives the company intellectual property coverage for pay-per-referral in the directory assistance marketplace. "Local.com believes that ad-supported directory assistance is the future of 411 services in the U.S.," Clarke said. "We encourage directory assistance and free 411 companies that are interested in using our intellectual property to enter into licensing agreements with Local.com."

On June 25, Local.com announced another patent which covers technology that allows the company to identify location information, such as a company's address or where its goods are sold, on websites and index that information so that it is searchable geographically.

Jennifer Black, the vice president of marketing for Local.com, said that the company does not have a target list of companies to go after, but is looking into its options.

Jon R. Hickman, an analyst at MDB Capital Group, said how these new patents will affect the stock is hard to determine. "The patents make it more attractive but how much is anybody's guess," Hickman said. "You don't know if other people are infringing on the patent. You don't know how broad the patent is. You don't know if they're going to fight it and demand money from company's [for patent infringement], and you don't even know if the patent is valid until it gets tried in court."

Hickman said he thinks the stock is skyrocketing because of its potential takeout value. "These patents, I think, make people look at the company and say look there's real takeout value here," Hickman said. "Yahoo (nasdaq: YHOO - news - people ) could take it for $200 million and not even blink."

Hickman says the stock has been undervalued for some time. He has a "buy" rating on the stock with a price target of $7.25. "I am not changing anything right now because I'm waiting to see if this is noise or this is real," he said. "I do know they get takeout offers weekly and they weren't entertaining offers seriously. But would they sell for $15 a share? Or $20 a share? It would be hard to turn that down if I was aboard member."

Quote from: kslifka on July 02, 2007, 04:25:40 PM
Quite the sell-off/shake-out...shall we say price drop at the end of the day.


Ended up with a black candle...but price did finish above the 38.2% fib retracement level.

I surely don't believe LOCM is done....unless bad news hits...I guess.

Kslifka, I don't think it is finished myself just as you.
The black candle, traders taking profits on the big jump up.......
Sweet, Margin sells off and major profit taking leave ample opportunity. Buy...
I see a solid traction to $20.00
Vista deal gaining traction and supported by Hewlett Packard. New financing with potential access to 30 news papers classified/ad sections... Solid support from here !!!

52wk Range: 3.05 - 6.95
Volume: 28,346,079.......
Avg Vol (3m): 121,164

Technicals
Record Volume.......
Most Actives
Gap Up
MACD - Bullish.......
Percentage Gainer

Last Price Quote is:
101.08%above 13-day MA
105.91%above 50-day MA
RS Rating: 98 

Fundamentals
Key Data:
Market Cap (M): $64.39 
P/E Ratio: N/A 
PEG Ratio: N/A 
Next Earnings: 08/09/2007
Last Analyst Rating: Buy

Kslifka...from me another well deserved Applaud for this stock pick.......

Could Local.com become the Local Search Industry's Qualcomm?

Friday June 29, 5:18 am ET


John Gilliam submits: Qualcomm (NasdaqGS: QCOM - News) has long been envied for its stable of wireless patents that allow it to essentially just sit and collect license or royalty fees. That model is tough to beat - while there is expense in establishing and defending the patents, there is little to no overhead, capital or risk once agreements are in place with end users. From that point forward, QCOM essentially is a toll booth keeper for the wireless telecom companies, nearly all of whom must pass over their bridge. These "tolls" translated to $636 million in EBITDA for QCOM in the quarter ended March 31.

In the online search market, there may be a company that is now positioned to profit handsomely from a similar model. With very little fanfare, micro cap search upstart Local.com announced this week that the US Patent and Trademark office has granted patent #7,231,405 for the process of indexing and retrieving web-related information by geographical location. That the news was not on the front page of the Wall Street Journal is not all that surprising, very few happenings related to companies with such a small market cap get the attention of Wall Street commentators or analysts. However, I think the situation at Local.com bears watching and could turn into a very interesting story.

The patent covers local search technology related to identifying location information from web documents, indexing that information and making it searchable geographically. That is a very broad patent that seems to encompass what the major players in search are already doing with their local search applications. This seemingly opens the door to a tremendous opportunity for Local.com. The breadth of this patent is pretty striking in that it seems to covers much of what Google, Yahoo, AskCity, Verizon, Infospace etc. already do. Though I recognize that QCOM is in a completely different sector with different economics, I thought the similarities in the breadth of their patents in the context of the wireless industry made a good analogy with the untested but seemingly very broad reach of LOCM's patent when viewed in the context of local search. The other big patent dispute in the search arena would have been an interesting case study, but it never made it to trial. Goto.com (later changed to Overture, then Yahoo Search Marketing) invented the pay per click business and patented many aspects required to execute the model. When Google came along (also Findwhat/Miva and others) and developed a better mousetrap that built on some of Overture's patents, they wisely agreed to settle the matter out of court in recognition it would be very difficult to prevail in the lawsuit filed against them by Overture's new parent company (Yahoo). Rather than fight a losing cause vs. a competitor with very deep pockets, Google paid Yahoo a settlement fee in the $300 million range. Miva/Findwhat.com, who was only marginally profitable with the pay per click model, took a similar tack in settling for $8 million plus undisclosed license fees going forward.

While neither QCOM nor the Overture scenario are precisely on point, both give good insight into what we may see happen with LOCM. While the local search industry is in its infancy and is not monetized to the degree we see in the wireless sector, the QCOM situation gives an idea of what kind of revenue can be earned when a company owns patents broad enough to touch just about anything done to monetize that space. The Overture scenario is closer to the heart of the matter in that it deals with search, but I would submit to you that LOCM could be in for much higher compensation than Overture received. First of all, Google had just turned the corner on profitability when it settled. It was pre IPO and Google had all the promise in the world, but nothing like the $12 billion cash hoard of today, not to mention its gargantuan $165 billion market cap. Further, the monetization of search was in its early stages and $300 million seemed like a very large amount at that time. Keep in mind that this was before Google had shown the world how much could be made from search. The investment we have seen from the big players in search since that time and particularly in local search suggests that all appreciate its potential. Thus, it is conceivable that all of the big players would be willing to pay to play if required to do so. If that happens, they all have a lot more to play with now.

The timing of this patent grant is interesting, as a suit alleging that Verizon has infringed on another very broad search patent has just been allowed to proceed to the discovery phase in US District Court in Texas. The owner of the patent, the UK based Geomas, is apparently seeking to establish its right to receive licensing fees from all the major players in search.

Sources have indicated that Geomas may find this to be a fairly tough battle due to the fact that its patent application was filed in the mid 90's before internet search was as common as it is today. In fact, many of the biggest players in search today cite the Geomas owned patent as prior art in their own filings. Further, defendants in the Geomas suit can take the position that Geomas has never developed a working technology based on this patent, as they are primarily an entity that owns intellectual property and they have little in the way of actual operations. Should LOCM decide to follow in the steps of Geomas and go the litigation route, they have a much better set of facts. The timing (this week) of the patent grant and the elaborate technology platform already in use will diffuse any defendant's attempt to use the two most promising defenses Verizon will have to the Geomas claims.

A key question is whether LOCM can afford to take on some of the industry's deepest pockets. LOCM does have a pretty stellar balance sheet for such a small company. It is very rare for a company with a $35 million market cap to have $10 million + in the bank, but LOCM does. With only a very small debt load that leaves its net cash approaching $9 million, it does appear that LOCM could go that route, possibly long enough to extract a significant enough sized settlement that could allow them more resources for litigation against the others. The better question is whether that is the best route to take, as LOCM shareholders might not be patient enough for that approach. Considering the recent flurry of deals among the search elite, they may not have to. As we see more and more deals with ever higher price tags, it would come as no surprise if Google, Yahoo or MSN ponied up to buy LOCM.

With the potential for the local search pie to exceed $10 billion in a few years by many industry watcher's estimates, why would Google or Yahoo sign up to pay $10 - $20 million or so per year or pay royalty fees per transaction that could push it to three or four times that level when they might be able to buy the company outright for $100 million or so? With LOCM's current cash adjusted market cap around $25 million, who is to say that they couldn't pick it up even cheaper - maybe for what could ultimately amount to a couple of years worth of royalty fees? That case is quite compelling when you consider that not only would they be avoiding the royalty fees for years to come, but they can then determine what their competitors will pay as royalty fees.

The type of one-upmanship we have seen with other recent acquisitions by the big search players' (i.e. Google/Doubleclick, Microsoft/Aquantive) recent takeovers suggests to me that a bidding war for LOCM could even materialize. If Microsoft were willing to pay $6 Billion to purchase Aquantive just a few weeks after Google outbid them for DoubleClick - what would either of them pay to own a local search patent that could be used to extract payments of $100 million or more per year from the others? According to various industry sources, the market for online ad spending for local search placements is expected to rise to between $10 - $13 billion annually by 2010.

At last count, Google and Yahoo each command about one third of this market, with MSN , AOL, Ask.com and several yellow page providers taking most of the remaining third. Using the conservative end of those estimates with a total market spend of $10 billion - If Google still controls 1/3 of that market, that would make their annual take about $3.3 billion. What kind of license fee would Google be willing to pay if they were threatened with an injunction that could all but shut down a $3.3 billion revenue per year enterprise? $300 million like they paid Overture? Maybe or maybe not. To spread the risk, suppose instead that they just paid LOCM per transaction (click), some nominal fee like 2% of the revenue. In such a scenario, LOCM would be earning $66 million per year in license fees from Google, with similar arrangements with the other big players in the local search space. Even at just 1% of Google's estimated local search revenue - that would be around $33 million per year, or about 30% higher than the total existing cash/debt adjusted market cap for LOCM. It is the juxtaposition of that kind of fee revenue vs. the current market cap that requires some serious attention.

So how will this play out? Will LOCM get $10 - $20 million per quarter from each of the search players? Will they get 2-5% of local click revenue from each, possibly resulting in even higher quarterly fee revenue? Or will they sell out for $100 - $150 million and let a bigger player with more resources work this patent for even bigger license fees?

Hard to say at this stage, but one thing is certain - existing shareholders who bought the stock near its current range will likely be very pleased with where this story is headed. While LOCM may never receive the $2 billion + per year that QCOM receives in royalty payments, the prospect of earning even $100 million in royalties per year looks pretty good when you have a total market cap of less than half that.

Based off the information we have of this company what do you think the market cap of this company should be in the next year? I'm guessing 300-400 million takeover right now.

300 million market cap/9 million shares outstanding= $33.33 price target
400 million market cap/9 million shares outstanding= $44.44 price target