Why the valuation of Local Corp with lower than 40 million is one of the biggest jokes the Nasdaq had ever seen
The Inflection Point of Local Corp is Now
• Five material challenges in 24 months withstood
»Significant cost to the company in revenue and earnings
• Highest revenue per employee ever
»Projected growth to about $900k per employee EOY
• Returning to profit
»Significant cost savings starting 1Q13
»Achieved 1Q13 Positive Adjusted EBITDA
»Achieved positive cash from operations from 1Q13
Reuters: Local Corp Issues FY 2013 Guidance; Revenue Guidance In Line With Analysts' Estimates
Local Corp Issues FY 2013 Guidance; Revenue Guidance In Line With Analysts' Estimates
Thursday, 9 May 2013 04:15pm EDT
Local Corp announced that for fiscal 2013, it expects revenue of between $93 million and $95 million and adjusted EBITDA to be at least $5 million. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $95 million and EBITDA of $5.80 million for fiscal 2013.
My favorite for a buy of Local Corp is Rakuten, because this will produce the biggest synergies - First US-Buy of Rakuten was Linkshare in 2005
Japanese Internet shopping portal Rakuten is buying Internet Capital Group partner Linkshare Corporation for about $425 million in cash.
Rakuten is very well known in Japan for its on-line shopping, travel, golf reservations, community and greeting cards sites. This will be the company’s largest acquisition to date.
“We are extremely pleased that LinkShare has agreed to be acquired by Rakuten under the proposed terms,” said ICG chairman and CEO Walter Buckley.
“Since we acquired a stake in LinkShare in 1998, we have strongly believed in LinkShare’s potential to be a market leader, the strength and vision of its management team and the value it delivers to merchants and affiliates, added Buckley. “We view this event as a great illustration of the ICG model, as it demonstrates the full cycle of owning, building and realizing the value of one of our Core partner companies.” AP provides a little background info on LinkShare:
LinkShare runs a performance-based online advertising business called affiliate marketing service. LinkShare places client companies’ advertising on blogs and other Web sites managed by individuals, and the site creators can get compensation once the viewers of the sites buy advertised goods.
Established in 1996, Linkshare posted a revenue of $32 million for the fiscal year ended June last year. Its clients include such companies as Dell Inc.
The deal is still subject to customary closing conditions, but is expected to reach completion within about four to six weeks. ICG is expecting to get about $150 million out of the deal.
Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news
Monthly Unique Visitors of Local Corp (market-cap only 37 million) will increase after my estimate to about 120 million in Q2/2013 - an increase of more than 10%against the about 106 million in Q1/2013