Good afternoon members,
Great potential here with LIVE for a short squeeze in the near term. Here is an example of a recent short squeeze we witnessed last week. Short squeeze explanation below.
We have seen an excellent recent example of a short squeeze with (NASDAQ: GENE) moving from $1.20 to $11/Share !!!
What is a short squeeze?
A short squeeze is a situation in which a stock’s price increase triggers a rush of buying activity among short sellers. Short sellers must buy stock to close out their short positions and cut their losses, which results in a further increase in stock prices, which compel still more short sellers to cover their positions.
How it works/Example:
A short sale reverses the normal buy first/sell second sequence as a way to profit from an anticipated future fall in price. An investor borrows shares of Company XYZ from a broker and sells them at the market price. The investor hopes to buy back the shares at a lower price in the future, thereby “covering” the position by giving back the broker his shares. Instead of the traditional “buy low/sell high”, an investor seeks to “sell high/buy low”.
A short squeeze occurs when the stock’s price doesn’t decline as anticipated.
For example, let’s say you sell short Company XYZ stock at $20. But, instead of the price going down, it goes up to $25 and appears to be going higher. Now you’re in trouble. You need to cover your position and limit your losses. You decide to buy Company XYZ shares as soon as possible–you and everybody else who shorted the stock. This generates tremendous buying pressure on the stock, and the short sellers rushing to cover their positions only escalate the price increase.
Why it Matters:
Short selling can be a smart way to hedge a portfolio, take advantage of a down market, or capitalize on knowledge of a certain stock. However, selling short is a very aggressive and risky investment. After all, with a regular stock purchase, an investor can only lose the original investment as the stock falls to zero. But in theory, a stock’s upside price potential is unlimited. The investor can end up on the hook for more than his original investment.
Short squeezes occur more often in small-cap stocks with small floats, but they can occur with any stock. Investors should pay attention to the short interest ratio of a particular stock and the number of shares sold short relative to the float–those with high short-interest ratios are often more susceptible to a squeeze.
It is strange and just bad timing for shorts to be taking such large positions in a company with recent announcements like the one below.
It is rare to see revenue increases to the tune 1250%, like LIveDeal, Inc. (NASDAQ: LIVE) announced last week. With this in mind it makes for an exciting security to follow in to Q2, 2015. See the excerpt from the February 12th, 2015 press release below.
The company’s revenues for Q1 2015 were $8 million, an increase of about 1,250 percent over the same period the year prior. This figure represents not only a record for quarterly revenues, but was higher than the entire fiscal year of 2014 and higher than any other quarter in the Company’s history.
Other highlights include:
- Nearly 1,000 percent increase of gross profit, compared to the same time period the previous year
- The company’s cash position continues to be strong, with $6.5 million in cash and cash equivalents, compared to $8.1 million from the previous quarter
- A large portion of cash was used to finance the purchase of approximately $3.6 million in inventories
- The company has put significant resources into advertising and marketing
There is no doubt future forecast’s for this security will be adjusted accordingly in 2015? We will have to wait and see what the analyst thoughts are.
There is no doubt LiveDeal is a company we can really sink our teeth into for the long term. Updated report coming soon.
Initial Introduction Report Below on LiveDeal, Inc. (NASDAQ: LIVE)
LiveDeal, Inc. (NASDAQ: LIVE) Initial Report
This week’s feature profile has a great chart setup with uptrend forming and a recent pull back to breathe a little here for the next run up. Couple that with this announcement last week- “Largest Quarterly Sales and Biggest Increase in Revenue in Company History” Full press release: http://www.prnewswire.com/news-releases/livedeal-inc-announces-largest-quarterly-sales-and-biggest-increase-in-revenue-in-company-history-291645661.html
LiveDeal, Inc. (NASDAQ: LIVE) “Simple yet genius marketing company”
• Company announces record revenues and revenue increase for the December 31, 2014 quarter.
• Company has created over 10,000 deals for over 8,000 clients in over 50 cities nationwide.
• Company added 4,457 new restaurant deals during the fourth quarter of fiscal 2014, up over 1,100 deals sequentially.
Visiting LiveDeal’s website will give you an easy understanding of the Restaurant Marketing plan.
Visit LiveDeal’s website http://livedeal.com/
COMPANY OVERVIEW AND PRODUCTS:
LiveDeal, Inc. (NasdaqCM: LIVE), (“the company”), provides specialized on-line marketing solutions for small-to-medium sized businesses (“SMBs”), to improve customer awareness and merchant visibility. The company offers these clients tools to extend their marketing reach to relevant prospective customers via the internet. The company also offers client’s promotional marketing with the ability to offer special deals and activities through LiveDeal.com, as well as mobile applications for iOS and Android users and the company’s online publishing partners.
The company was founded in 1968 and is based in Las Vegas, Nevada. In 1994 the company started in the online marketing industry as YP.com, and was the first company to bring print yellow pages to the Internet. The company merged with LiveDeal in 2007 and moved into the online classifieds business. The company has refocused its efforts on SMB clients, offering them an online marketing strategy. The company offers clients packages of services to create and maintain an online presence. The company’s products and services include template and customer Website design, optimized either for desktop or mobile devices; social media marketing (“SMM”); and content marketing (“CM”).
The company operates through two business segments: Legacy/Merchant’ Services and Online Marketplace Platform. The online marketplace platform includes the company’s wholly-owned subsidiary, Live Goods LLC, which is used to acquire companies under the online marketplace platform. In the Online Marketplace segment the company offers consumer goods and restaurant services.
During fiscal 2014, the company made three acquisitions of businesses that offer consumer products, in order to leverage the company’s consumer base. The company entered the consumer goods space through its March 7, 2014 acquisition of DA Stores, LLC a furniture retailer.
This acquisition was intended to assist the company in the implementation of its consumer goods online platform. On May 6, 2014, the company acquired the Canadian company, DealTicker Inc., and online platform company in the retail industry. DealTicker Inc. offers discounted products and services in the United States and Canada, and increased the company’s ability to sell consumer goods online. In August 2014, the company acquired Modern Everyday, Inc. (“MEI”), a company with both a physical retail location, as well as a presence on the Internet, providing consumers with a range of products from apparel, beauty products, children’s toys, dining products, kitchen products, and sporting goods. Modern Everyday had a proprietary software platform that allows the company to track products and predict consumer behavior and spending habits.
The company’s Online Marketplace segment also contains LiveDeal.com, its online platform. The company launched LiveDeal.com, in San Diego in September 2013, after working closely with well-known publishers in the daily deal market. The platform was introduced into the Los Angeles market in December 2013. In 2014 the company launched an advertising campaign that was directed at over 50 cities to support the company’s restaurant owner clients who have created over 10,000 deals in over 8,000 restaurants in these cities. The company’s goal is to make LiveDeal.com a vertically integrated “one-stop shop” for the everyday consumer.
LiveDeal is a real-time deal engine that allows the company’s SMB clients to create and control the timing and duration of offers made end customers. The LiveDeal engine includes geo-location so that orders can be made to nearby existing and potential customers. This platform allows users to fill up slow day parts, and is designed to give users more profitability per deal. The LiveDeal engine is designed to connect merchants with their consumers, and has initially been targeted toward restaurants to boost customer awareness and merchant visibility on the Internet. The platform allows restaurants full control and flexibility to instantly publish customized offers whenever they wish to attract customers. The company initially launched the platform in California, and the platform has now been deployed in 50 marketplaces, with a total of over 8,000 restaurants.
LiveDeal, Inc. (NASADQ: LIVE) could easily be our second triple digit gainer this year. Very little stock out there, 7.1M in the float according to Yahoo Finance, 50.99% held by insiders and 1.80% Institutional ownership. Revenues increasing enough to support a much a higher price in our opinions. Could be a monster in the making near and long term.
There is a lot of information here to digest for our initial report. Therefore, we are in process of creating part two now and will have that to everyone soon.
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