LiveDeal slides after CEO sends letter to shareholders

LiveDeal (LIVE), a provider of customer acquisition services for small businesses, is trading lower after the company's CEO issued a letter to shareholders earlier this morning. In the letter, CEO Jon Isaac stated that the company achieved profitability in the month of April, which he noted followed 39 consecutive months of losses. Isaac stated that LiveDeal is not a "daily deal" company and has no plans to enter that market segment, based on its belief that the daily deal model is not a successful or profitable one. Issac said that mobile applications will be the company's primary focus for product development and that LiveDeal is developing strategic relationships with "larger, well-known companies in the industry." Shares of LiveDeal, which fell as low as $9.70 intra-day, have recovered during the session and are down about 2.5% to $10.52 in afternoon trading.

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