Today the stock closed up 14.58% and there was no news in the media concerning the company. This got our attention especially since we have a speculative position in the company. Looking at the rumor-mill in the message groups, a lot of the talk is about a short-squeeze.
Short squeezes usually happen when there is a large percentage of short interest in the stock and some event causes all of them to want to close their positions. One such event happens when there is a positive news report. Another possibility is when there is a rumor from a source that is believable.
There is another rumor about the possibility of Google acquiring the company. The Google finance site page on Local.com has a comment that was posted 9:07 AM PST today that reads as follows:
Will Google Buy this stock???
Rumors are circulating wallstreet that google are in talk with LOCM!!.
I'm not really sure how true this is but my sources tell me a takeover
might come in before the end of November!1. Don't take my word for
this as I might be wrong!!. But from the look of things and careful
analysis it won't hurt that google will or might acquire this
company!!!. Stock price have really buttom down for the pass week and
I could see a trend reversal starting this week!!. This is not an
information for anybody to purchase this stock as I might be wrong!!.
If you won't to give this a try, please go beyond the takeover and
focus on the fundamentals!!
There are a few responses to this post, which adds up to further pumping.
When you look at the content of these posts carefully, one can notice an obvious bullish pumping tone about them. There is also some hint that the poster received the information from a source that indicated that the takeover might happen the end of November. Such pumping with guesses on wild timings can be popular in Newsgroups as it gives a little bit of authenticity to the post. But, that alone is hard for a stock to rise that much even considering the low float. Looking further at the messages, something stands out to me that add to the authenticity. You are on your own from here on!!!
Local.com Analysis:
Short squeezes usually happen when there is a large percentage of short interest in the stock and some event causes all of them to want to close their positions. One such event happens when there is a positive news report. Another possibility is when there is a rumor from a source that is believable.
There is another rumor about the possibility of Google acquiring the company. The Google finance site page on Local.com has a comment that was posted 9:07 AM PST today that reads as follows:
Will Google Buy this stock???
Rumors are circulating wallstreet that google are in talk with LOCM!!.
I'm not really sure how true this is but my sources tell me a takeover
might come in before the end of November!1. Don't take my word for
this as I might be wrong!!. But from the look of things and careful
analysis it won't hurt that google will or might acquire this
company!!!. Stock price have really buttom down for the pass week and
I could see a trend reversal starting this week!!. This is not an
information for anybody to purchase this stock as I might be wrong!!.
If you won't to give this a try, please go beyond the takeover and
focus on the fundamentals!!
There are a few responses to this post, which adds up to further pumping.
When you look at the content of these posts carefully, one can notice an obvious bullish pumping tone about them. There is also some hint that the poster received the information from a source that indicated that the takeover might happen the end of November. Such pumping with guesses on wild timings can be popular in Newsgroups as it gives a little bit of authenticity to the post. But, that alone is hard for a stock to rise that much even considering the low float. Looking further at the messages, something stands out to me that add to the authenticity. You are on your own from here on!!!
Local.com Analysis:
- Part 1 - A Patent Speculation Play.
- Part 2 - 411 Patent Details.
- Part 3 - Investment Outlook.
- Part 4 - Analysis Of Another Speculative Upturn.
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