major turnaround, page-4

Hi sanok ......

< I was buying at .22 - .25 before two consolidations >

Today's LOK close (UP 5.1% @ $6.15ps) is the equal to just .0615c, prior to the consolidation and reverse split. Not very exciting as such, and your $23.85c "break even" would seem a "month of sundays" away to you, no doubt.

2007 will CERTAINLY be a "major turn-around" year I believe, starting with the Q4 2006 Results due to be released sometime, early in february.

From THE 2005 year Q4 report (on feb 9th, 2006), it's worth noting:

< Total revenue of $10.0 million in the fourth quarter of 2005 grew 9% from $9.2 million in the third quarter of 2005 >

Looksmart have advised that revenues for Q4 - 2006 are expected to grow by 26% - 28% on the $12.2m total revenues from the preceding Q3 - 2006 period. This will give us between $15.4M and $15.6M and @ $16M, would represent an improvement of 60% on the previous year's figure of $10M.

Worth noting too is that Gross Margin (in Q3- 2006) improved to 38%, (from 35% in the second quarter of 2006) and is to further improve (in Q4) to an approximate 40% to 41%, as a result, (Looksmart state) of further improvements in TAC and ongoing revenue mix shift; TAC is expected to be in a range of 60% to 61% as compared to TAC in the Q3 period, being 64%. (The Traffic Aquisition Cost).

So it's all contrary to a poster's statement today, who (in fact) said that ............"A number of fundamentals suggest a turnaround is a long way off at best." I'm not sure what he is referring to?

To dramatically improve on the guided for $16M (Approx. - Tops) Q4 revenues, Looksmart has to have increased their number of "users" who provided the 100M paid "clicks", of .10cpc, during Q3. This is another metric that continues to improve each quarter.

(Total unique visitors [users] to the Company's network of owned sites, were 14.5 million at the end of the third quarter compared to 10.3 million at the end of the prior quarter.)

This website (links below) does show the potential of a dramatic improvement in "uniques" for the Q4 period. Both FindArticles.com & Looksmart.com (alone) have near on 10M between them. Add on a similar pattern of improvement to the 181 Looksmart Vertical Sites (plus furl.net), and the Co is then, "cooking with gas".

findarticles.com ..... 5,156,872 ..... +4.2% ..... +89.3%

http://snapshot.compete.com/FINDARTICLES.COM+

looksmart.com ..... position 311 ..... UP 28 ..... UP 3,410 positions

http://snapshot.compete.com/looksmart.com?pid=186

Looksmart.com has improved it's "ranking" by some 3410 positions this year. That's sensational!! And it has increased it's "unique" users, by some 791% this year!!

looksmart.com ..... 3,794,389 ..... +10.9% +791.1%

Lastly, technology licensing brought in approx $2.1M in Q3 and will have an additional 2 (not named) partners, can possibly be added to the Q4 figures. Plus those (their) increased revenues, (a share of for Looksmart) from any of those, existing type AdCenter partners.

$16M is a "gimme" but I feel it can even be beat! Looksmart also stated that......... "Operating expenses for Q4 (were $8.9 million in Q3) are expected to remain relatively constant with the third quarter of 2006.

So, with that guided for increased revenues, Looksmart could very well have it's 1st profitable quarter since the loss of MSN days. - Break even, at the very least!

The previous two posters are talking through their losses from past investments in the Co and mostly fail to be objective within all of their comments. They are in for a surprise, I truly feel. Good luck!!

dj