MDB Capital Sees New Growth Engine for Local.com (LOCM)

December 15, 2010 10:10 AM EST Send to a Friend
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Analysts at MDB Capital are making positive comments about Local.com (Nasdaq: LOCM) following a presentation at the LD Micro Conference in Los Angeles last week.

The firm said they have come to believe that there is a subtle, yet significant transformation occurring in the company's future growth initiatives specifically related to the Octane360 platform.

The firm views Octane360 as a new growth engine. "With the acquisition of Octane360 the company is now focused on building its advertiser base through the sale of the Exact Match product, which monetizes at a much higher rate than Local.com's typical business listing customer, the firm notes.

MDB notes the real change in the company's growth potential lies in the recent initiative of owning and managing thousands (even hundreds of thousands) of local oriented web domain properties. "In our view, the increased traffic that could potentially come from the effective ownership/management of hundreds of thousands of local domains represents a probable new and very large revenue source for 2011 and beyond. Additionally, we suggest that this potential revenue is as yet unrecognized by investors.

The firm has a Buy rating and $15 price target on LOCM.

Shares of LOCM are up 7 percent to $6.13 in early action.


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