re: look surging to news Hi Yanlin
Would have been smarter for LOK to hold the Lycos news back until the Q2 announcement because LOK has a history of folding straight after, theres not too many longs that would argue with that.
Looksmart is like OSH it has great potential but is riddled with traders.
They have two problems IMHO (1) a potential class action for changing their pricing model midstream.
Which probably wont hurt them but the share price will tank if the action goes ahead.
(2) they are the gateway to MSN search, which is great but thats where 60% of their revenue comes from, so it's a catch 22 situation............they make heaps from this association but if MSN every cancel their contract they will be worth zero.
With Looksmart the returns could be huge, and so could the losses...........I would expect a retrace after days frenzy to get on board.
Long term probably worth a punt, but be very careful.
Tex.
LOK
looksmart limited
