LOK looksmart limited

how high can it go?

  1. 2,070 Posts.
    Looksmart continues its 10% steps up each three days or so. More analysts are getting behind it as well. Overture which is ahead of LOOK in its recovery has passed US32. One of the few boom sectors - web permission-based advertising.

    US Bancorp's Safa:

    Safa says there is potential upside for this quarter beyond his guidance......which was higher then LOOKs!

    LookSmart - Tailwind Into 2003. We expect LOOK to report strong results, with possible upside to our recently revised Q4 estimates of $28.2m in revenue and EPS in the $0.04 range. More importantly, we believe these results will provide a significant tailwind for 2003, as portals are looking for more ways to monetize their search traffic. Key metrics include Y/Y listings revenue growth, total paid clicks and average cost per click. For Q4, we are modeling Y/Y listings revenue growth of 94% to $23.5m, driven by paid clicks of 148m and average cost per click of $0.17.
    Conclusion. While over the last two years portals have focused on monetizing the top half of the search page, we believe they will increasingly focus on monetizing the entire page, which positions LOOK's paid inclusion model well, as it primarily monetizes the bottom-half of the search page. With valuation at attractive levels, and potential catalysts in new distribution partners, we would be buyers of shares of LOOK prior to the quarter announcement.
 
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Currently unlisted public company.

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