An apple a day promotion at Local.com allows booking of some short-term profit

Local.com shot up in the morning today following an announcement from the company about a local mobile search promotion that gives away a free iPhone every day for the next 30 days. The interesting thing about the promotion is that it allows entering once every day the promotion is on. This is a good strategy to publicize the local.com name in the minds of customers.

As talked about in our 8/10/2007 trade commentary, Local.com was purchased using funds realized by selling Google. From our analysis of Local.com, playing the cycles for short-term profit was recognized as a good strategy and that is what we did today. The up turn allowed us to realize a short-term profit of 11.3% in just over a month. The funds realized were used to buy shares of ValueClick (VCLK), a mid-cap (1.9B market cap) online marketing services company selling for around 2 times next years revenue estimate.

The list of stock sales and the gain/losses for the year are listed below:






















StockBuy DatePriceSell DatePrice% Gain (Loss)
Harrah’s (HET)75.6110/2/200683.688/7/200710%
St. Joe (JOE)39.48/7/200741.88/8/20076%
Google (GOOG)4413/14/2007515.998/10/200717%
LOCM (LOCM)5.478/10/20076.0949/17/200711.4%
















Overall Portfolio Gain/(Loss) YTD----3%




An analysis of ValueClick will follow.


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