Struggling Shopping.com Stocks Drops 30.7%

Shopping.com’s stock was pounded Friday in the wake of the troubled Internet retail firm’s disclosure that it must raise $26 million over the next year to stay afloat. Shares of the Corona del Mar company tumbled 30.7%, or $6.75, to close at $15.25. The struggling Internet retail firm has been negotiating for months to attract private investors. John Markley, Shopping.com’s chief executive, didn’t return phone messages. The company disclosed its financial situation in documents filed earlier this week with the Securities and Exchange Commission regarding the registration of 2.3 million shares of stock at an offering price of $25.25. The stock is being registered for investors who bought $10 million in convertible debentures, bonds that are convertible into stock. Aside from its money troubles, Shopping.com is burdened by a series of lawsuits by shareholders and an SEC investigation into allegations that the company’s stock was manipulated. During the three months ended April 30, the company lost $4.7 million.