To illustrate my belief that Local is enormously undervalued, I made a list of next year's revenue estimates for 14 peer companies in the local search and advertising space, including Yelp, Angie's List, Demand Media, (DMD), and ReachLocal (RLOC) among others. The average price/revenue per share, or revenue multiple, of the group is 2.5 times. Applying this to my estimate of Local's revenue per share in 2013, I arrive at a stock price of $12, which is where I believe the shares should be trading today."
In this respect, Local Corporation is right where the action is
It looks to me like monetizing mobile apps is the business to be in. The market is $2.7 billion and predicted to grow to $8 billion over the next four years. Recently, Facebook's stock got a much-needed boost when it announced plans to use some of the $16 billion it raised in its May IPO to develop mobile apps, placing it in the company of Apple (AAPL) and Google in creating the world's largest ad network.
In this respect, Local Corporation is right where the action is. It just announced plans to introduce a mobile app for iOS and Android phones so on-the-go users can search for what they need locally. To me, it makes more sense to have a mobile app for local searches than to check real estate listings.