NEW YORK (TheStreet) -- LiveDeal (LIVE) stock is soaring Wednesday after the company announced it will be added to Morgan Stanley Capital International's (MSCI) exclusive Global Index, an opportunity to gain worldwide recognition in global financial markets.
"In a rebalancing of MSCI's global indices, LiveDeal is being added to the MSCI US Micro Cap Index, and with it, investors should see greater liquidity, and price appreciation," the company wrote in a statement. "LiveDeal should benefit greatly from being added to the exclusive list of companies that will garner worldwide attention from large pension plans, hedge funds, asset managers, and banks."
The company's addition will be effective by close of market May 30.
By early afternoon, shares had spiked 34% to $5.08.
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: