LOK looksmart limited

i will give 1 dollar

  1. 8,265 Posts.
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    and you give me back 64c in every dollar i give you.

    then you run the business from the 36c in the dollar which is left.

    that is the LOOK model.

    For EVERY single dollar in revenue......LOOK pays its partners 64c

    Imagine your local club or pub or TAB paying punters back 64c in every dollar spent.

    then having to run their business from the 36c in the dollar that is left.

    how long would you last????

    thi sis the LOOK problem and the flaw in its model.

    It is unable to grow its own traffic at a fast enough rate to offset the payments to partners.

    and with revenues of around $11 forecast for Q2.......$6.5m plus goes back to its partners.

    and will lose around $4m for the quarter again.

    The only way for the LOOK model to work is to have the larger amount of traffic or revenues from your own site.

    Its really quite simple and therein lies the LOOK flaw and therein lies why LOOK is trading at $3.50 USD overnight and will go much lower.


    The current CEO has had 18 months to develop and build traction it its own traffic....to date it is NOT growing......and that is why the share price is falling.




 
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