The business of Local Corp is more sustainable than the business of Yelp
Yelp is bad for real consumer-products, you can it only use for restaurants and similar. But if you had found an excellent restaurant, you will ignore Yelp in the future.
But by every buy of a new product, you want to look at the inventory of some shops around you and use an offer of Local Corp, especially since Krillion was intergrated in hte most offers of Local Corp.
And therefore a rational investor will hurry with a change from extreme overvalued Yelp with the big danger of a fast saturation to the extreme undervalued Local Corp with a lot higher sustainabilty than Yelp.
Yelp released its earnings report for the second quarter with revenue at $55 million. Revenue coming in at $61.2 million in the third quarter and a per-share loss of $0.04.
The increase of 6.2 million from 55 million in Q2/2013 to 61.2 million in Q3/2013 is only a quarterly growth of 11.3% - extreme low for a company with more than 20-times-revenues.