LiveDeal Inc. (NASDAQ: LIVE) saw its shares take a handy jump in trading Tuesday following the vote of confidence that its chief executive gave the company. Jon Isaac, CEO of LiveDeal, may make a move to purchase up to 250,000 shares of the company’s common stock in open-market transactions. The question that needs to be asked is far from simple to answer without caveats: Should a purchase of a few hundred thousand dollars in shares translate to millions in added market cap gains?

The purchases are believed to commence at the earliest on Thursday, October 23, and may continue for an unspecified period. Additional LiveDeal shares may be purchased by Isaac in subsequent open-market transactions after the completion of this purchase.

Following this announcement, shares rose over 45% to a high of $3.83 in the first two hours of trading. The market cap was $53 million after the pop, so that means it was closer to $38 million right before. This implies that buying $800,000 or so translates into market cap gains of over $15 million.

Isaac said:

I strongly believe in LiveDeal as a company and believe that it remains highly undervalued in the market. The proposed stock purchases is symbolic of my confidence in the company and its mission to provide the highest level of service for our customers and the best deals available in the industry to consumers.

For a little background on LiveDeal, it is a publicly traded company that operates a geo-location based mobile marketing platform that enables restaurants to publish “real-time” and “instant offers” to nearby consumers.

The stock has a 52-week trading range of $0.94 to $11.94.

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