With all this positive cash flow, why isn't Loco buying in its own shares?
Yeah, that's correct -- the company has big debt coming due, with nowhere near the cash it needs.
"We touch a lot of people, and that gives us a lot of insight into what people are looking for..."
The only thing they touch is their private parts, creating a bit of self-excitement...
"Being a 15-year-old company, Local Corp. has moved to the last cycle. It continues to grow in size and stature, allowing Thiel to guide his team while handling the risks and threats that come its way."
This of course explains why revenues are shrinking and the stock price is at 75 cents. The next stage in the life cycle for this turd is a Ch 11 filing...
Those investors that choose to ignore my warnings about Loco's balance sheet do so at their peril...
And if lower receivables SUGGEST higher cash, then why is the cash n ot showing up on the balance sheet? Eh? What lower receivables actually SUGGEST is lower revenue, which does indeed show up on the income statement.
"Local Corp.: Core IP and Growing Markets Could Mean Business"
And debt that cannot be refinanced could mean bankruptcy...
Read the Q. Basically, the note was called by the lender because they came up short on revenues...
But the real idiot on this stock is the one that ignores the story on the balance sheet. You fool, you!
On Nov 21, 2013, 14 months ago, when that piece went out, LOCM closed at $1.70 per share. Don't you think the news is a bit baked into the stock price by now?
Goldman Capital filed a 13-G on Dec 31 indicating the purchase of 1.05m shares of Photomedex (PHMD) that was trading at about $1.50/shr at the time. LOCM was trading at about $1.04. Goldman is not a huge outfit so it is likely they had to sell something in order to buy PHMD. Don't be surprised if Goldman's next quarterly 13-F filing shows a sharp drop in its holdings of this turd.
I think we have already seen that, as I suspect it has been the institutions leaving that put this turd down to 70 cents in the first place
We should ask our Congressman what he has done about anything. Period.
RUBI at 4.4x revenue looks expensive compared to 0.2 for Loco, but that is not the story. Look at the balance sheet. LOCM has $15.4m of shareholders' equity, held up by $21.1m of goodwill (badwill?) and other intangibles, giving you the shareholder a negative tangible net worth of $5.7m. Further, it has $9.2m of debt including its revolver, all of it due now, against which it has $4.3m of cash (all of this as of Sept 30).
RUBI has $106.8M of shareholders' equity (book value of $2.98 per share), with $1.6m of goodwill -- practically all of that $2.98 is tangible value. Further, RUBI has no debt, but it does have $105m of cash sitting on the top line of its asset list.
So far, all of the people on the short side of the equation are big winners and at the very worst they are likely to give up a small amount of gains IF this turd ever does levitate. Big "IF."
"Thiel met Local Corp.’s founder, chairman and CEO Heath Clarke through the Young Presidents’ Organization..."
They met in the restroom, standing side by each at the urinals...