Chain Or Local? Traders Bet On Local (LOCM, SPMD)

Small-cap local advertising stocks like Local.com LOCM and SuperMedia SPMD are seeing heightened trading interest these days. And for good reason. When Groupon rejected the multi-billion-dollar buyout offer from Google, both Local.com and SuperMedia saw gains and increased volatility, including speculation that innovative local advertising might be the next hot thing. Local.com and SuperMedia have both rallied over 30% within the past week, although both have also pared some of those gains in today's trading session.