Zillow has with 39 million only the 1.8-fold revenues of Local Corp, but with 2,490 million market-cap the 67-fold of idiotic low 37 million of Local Corp:
Local Corporation Reports First Quarter 2013 Financial Results
• Revenue – First quarter 2013 revenue of $21.8 million
• Adjusted EBITDA – The company reported positive Adjusted EBITDA for the first quarter 2013 of $605,000
Zillow, Inc. Reports Record First Quarter 2013 Results
•Record Revenue of $39.0 million,
•Adjusted EBITDA was $5.1 million
16-times-revenues of Zillow are a joke - and 0.4-times-revenus of Local Corp too.
My advice is simple: I would sell all extreme overvalued Zillow-share at once today and buy for the amount shares of extreme undervalued shares of Local Corp. This extreme divergence is the result of pushing of the shares of Zillow through the incubators, who had only offered few shares in the IPO and owning great portion today, too, and extreme naked shortselling by Local Corp, but there is the shortsquezze near.