Maybe not prohibitively so. LOCM is bloated, headcount too high for ops and pretty big pubco expenses that can be axed. Plus getting $2.60 worth of value for each piece of paper that was trading at 60 cents a few months ago doesn't hurt either. The reason a deal could not be made before was that LOCM's market cap was 3x Inuvos. Funny how things can turn in just a few months
Google GrooveVC and click the link to their blog. That post came Friday afternoon about an hour before the close and the stock cratered right after that. But Groove didn't say dump all your shares, just sell enough to get your original investment out. Groove does that with all focus stocks, usually when gain gets up to between200-300%. With Inuvo it was up over 300% from their rec price. Without some other news, Inuv should bounce again on Monday
Watching on Level II and tempted to buy some since it has fallen so low, but there was a pretty big seller lurking today who was able to move part of his position, but he was not done at the end of the day. We are heading lower tomorrow, the question is how low. Already in uncharted territory - any thoughts?
Something giving us a jolt today - looks like thin float Icahn holdings are getting a jump today on VLTC action. Icahn knows MLM due to Herbalife holdings and he could be buying CVSL. The trading in the stock the last few days certainly looks like what would happen as he acquired a stake. They take it down, then bring it back up. That 260,000 share block that was bought earlier today was the biggest trade I have ever seen for CVSL.
It would be huge because it allows for significant upside for Looksmart shareholders. $2 of Adknowledge stock is a huge difference because its from a $200m /year revenue company with a decade of operating history in the same business as Looksmart.. They can use the NOLs and also maximize the remaining Looksmart assets and any search IP. Adknowledge is a very large and well established player who has had two IPO workups get shot down over the last decade. They acquire many companies and it makes sense that they would go public this way if the normal route hasn't panned out.
I have been in a meeting with INUV CEO Howe where he expressed a keen interest in acquiring LOCM. I would not be even a little surprised if this deal happens. It looks like some of the trading today is already starting to price in an stock deal that might involve some degree of dilution.