NEW YORK (TheStreet) -- LiveDeal (LIVE) skyrocketed by 47% to $8.39 a share on Tuesday after CEO Jon Isaac announced that he has collaborated with about 1,000 restaurants in the San Diego area, which accounts for about 20% of the dining locations in the area.
Volume of about 975,000 shares was approximately 20 times more than its average volume of 48,000.
The company's service at www.livedeal.com is similar to services offered by Groupon (GRPN) or LivingSocial, but LiveDeal's geo-location feature allows restaurants to send out deals to customers in real-time. In essence, the flexibility allows the establishments to create any kind of deal they want at anytime they want. Customers also interact directly with the restaurants once they find a deal through LiveDeal, eliminateing the need for LiveDeal to act as a go-between and for customers to sign up with and enter their credit card information into the site.
At the moment, LiveDeal features restaurants in both San Diego Los Angeles counties.
TheStreet Ratings team rates LIVEDEAL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about its recommendation:
"We rate LIVEDEAL INC (LIVE) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow."