one can only assume you own LOK.ASX shares.exit of stocks is...

one can only assume you own LOK.ASX shares.

exit of stocks is always an issue only the owner can decide.

however on LOOK there are a number of critical issues which IMO relate to share price valuation

LOOK has fallen over 50% since May of this year and IMO will continue to fall.

Note....i have called this fall on this and other sites

LOOK is being valued as it is for the following reasons IMO

1.....LOOK is still losing millions in cash every quarter

2.....LOOK is burning cash quarter over quarter

3.....LOOK is not generating any free cash flow

4.....LOOK is not growing revenues fast enough to offset its cash burn and or increasing operating expenses

5.....LOOK has a higher TAC now then when it had MSN

6.....LOOK has a lower CPC

7.....LOOK has guided for benign outward revenue growth and continuing losses

8.....LOOK has a SBLC which has two important covenants...the most important being it is "required' to have $40m in cash at ALL times.

the way LOOK is burning cash it will go close to breaking this covenant in this quarter

recent notable deals.....

Google wins Myspace

MSN wins Facebook

highlight to anyone this sector is controlled by Yahoo,MSN and Google and these monsters are NOT going to allow any minnows to get market share.

and this is combined with LOOK not being able to grow revenues in any material way in what has been essentially a bull US market in employment,income and more generally bouyant economic growth.

LOOK itself has no compelling or unique enough property to suggest revenues will surge or grow at a greater rate then they presently are.


In short,IMO

the risk to the downside is greater then the possibility of any upside to LOOK's share price.

Lets forget about rhetoric of someone buying LOOK or philerbusting about what LOOK have in the way of deals and or partners

lets deal with facts

i hope you go ok with your holding but imo........the outlook for LOOK is poor.