Why LiveDeal (LIVE) Stock Is Higher Today

NEW YORK (TheStreet) -- Shares in LiveDeal Inc. (LIVE) are higher 3.54% to $6.43 on Thursday as the company predicts gains in first quarter revenue.

The company, a geo-location based mobile marketing platform that allows restaurants to publish real-time offers to customers, announced Thursday that it expects revenues for the quarter ended March 31, 2014 to have increased over the previous quarter, which ended December, 2013.

The company will file its financial report for the latest quarter by May 15, 2014.

Preliminary numbers indicate a gain in top-line revenue compared to the same period in the prior year, the company said.

LiveDeal had a calendar Q4 revenue of $593,000 and a year-ago revenue of $555,000

"I am encouraged by our increased revenues as we finish off the first three months of 2014," LiveDeal CEO, Jon Isaac said.

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TheStreet Ratings team rates LIVEDEAL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate LIVEDEAL INC (LIVE) a SELL. This is driven by several 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. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, LIVEDEAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LIVEDEAL INC is currently very high, coming in at 79.60%. Regardless of LIVE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LIVE's net profit margin of -68.80% significantly underperformed when compared to the industry average.
  • LIVEDEAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LIVEDEAL INC reported poor results of -$0.66 versus -$0.26 in the prior year.
  • LIVE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has slightly increased to -$0.24 million or 7.25% when compared to the same quarter last year. Despite an increase in cash flow, LIVEDEAL INC's average is still marginally south of the industry average growth rate of 11.60%.
  • You can view the full analysis from the report here: LIVE Ratings Report

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