Investment and Company Research
Opportunity Research
MICROCAP HOT TOPICS
LiveDeal Leveraging its Successful Acquisition History
to Initiate New M&A Strategy
Following the wildly successful acquisition and integration of Modern Everyday, Inc., LiveDeal Inc. (NASDAQ – LIVE - $3.26 – Spec Buy) recently announced that it has initiated a new acquisition strategy designed to leverage the success of the August 2014 purchase and its current restaurant deal segment.
Since the closing of the Modern Everyday deal late last year, the Company has enjoyed substantial revenue growth and behind-the-scenes synergy via the Company’s e-commerce platform. In fact, for the fourth quarter of 2014, record revenue of $8 million was up 1200% year-over-year and was largely boosted by Modern Everyday sales. Going forward, management expects continued meaningful top-line growth from this subsidiary and that the execution of another revenue-generating acquisition could generate positive future results.
Judging by past success, a new acquisition in the technology or retail arena could take the Company to a new level just due to size alone, if the target(s) produces meaningful revenue. Plus, since management has demonstrated an unheralded ability to integrate seemingly disparate business models into a high-growth, high gross margin company, potential operating leverage and cross-sale opportunities from a new acquisition could have a very positive impact on LiveDeal’s valuation.
It should be noted that the Company’s high profile core business, just like the Modern Everyday line, continues to generate solid sales growth for LiveDeal and it remains leadership’s top focus. The Company’s flourishing segment, livedeal.com, is a geo-location based mobile marketing platform that enables restaurants to publish "real-time" and "instant offers" to nearby consumers and offers deals across the country.
Believing that its stock is undervalued at present, management was quoted in its press release saying that it may consider using traditional debt financing to execute an acquisition versus an equity-based or equity-heavy deal. This is likely welcome news to current investors as management can take advantage of record low interest rates, while shareholders would not be subject to dilution. Furthermore, the Company’s current balance sheet appears to have enough leverage to support a debt financing.
For more information, refer to our previous sponsored LIVE Reports, Updates and Hot Topic Articles by visiting http://www.GoldmanResearch.com/
Senior Analyst: Robert Goldman
Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.
Analyst Certification
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.
Disclaimer
This Microcap Hot Topics Article was prepared for informational purposes only.
Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm’s internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates and Microcap Hot Topics articles reflect sponsored (paid) research but can also include non-sponsored microcap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research reports on profiled stocks in the Opportunity Research format typically have a higher risk profile, and may offer greater upside. To date, Goldman Small Cap Research has been compensated $19,200 for investment research services and a series of articles. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information published by the Company, or other firms. Goldman Small Cap Research relied solely upon information published by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results.
Separate from the factual content of our articles about the Company, we may from time to time include our own opinions about the Company, its business, markets and opportunities. Any opinions we may offer about the Company are solely our own, and are made in reliance upon our rights under the First Amendment to the U.S. Constitution, and are provided solely for the general opinionated discussion of our readers. Our opinions should not be considered to be complete, precise, accurate, or current investment advice. Such information and the opinions expressed are subject to change without notice.
A Goldman Small Cap Research report or article is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed. This publication does not take into account the investment objectives, financial situation, or particular needs of any particular person. This publication does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.
ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
For more information, visit our Disclaimer: www.goldmanresearch.com
