Local.com and the Case of the Fake Release

Picture 229A fake press release went out late Thursday falsely stating that Microsoft had acquired Local.com:

The Microsoft Deal buyout of Local.com Corporation (LOCM) at over a 100% premium is just shy of a $200 Million dollar deal, a real success for shareholders of LOCM which has increased from teh $3 range to over $5 by close of trading today.

On Friday morning the company issued its own statement to correct the false impression:

The company has not been acquired, nor is it in discussions with Microsoft about a potential acquisition.

Barron’s has more detail on the controversy. I suspect it might have been someone trying to pump up the stock and then sell it before the truth was discovered. It’s unclear what went on exactly but it appears to be more than a prank.

Picture 230

3 Responses to “Local.com and the Case of the Fake Release”

  1. troy Says:

    This is not a surprise, there has been many pumper posting on the Yahoo stock board for local in the past.

  2. BC Says:

    Looks like they only got a bump of $0.80 for their effort.

  3. nathan Says:

    I have been following this stock for 2 years now, it is quite an interesting story really, I suggest everyone take a look at the insider trading link I have provided. You may see some patterns if you also look at the charts and volume over these trade dates. Particularly page 2

    http://www.reuters.com/finance/stocks/insiderTrading?sortBy=d&sortDir=DESC&symbol=LOCM.O

    It seems these low volume stocks need more oversight from the SEC.

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