Tokyo......sorry have not read this thread for ages.
LOOK still has inherent problems and as such still has inherent downside risks.
It will NOT make a profit anytime soon for many reasons.
1....its CPC is still only 10c
this is bottom feeder stuff and is the worst of all search companies.
2....Its CPC volume increased but at the expense of average CPC
so its doing more volume with a lesser average.
pretty hard business model to sell more for less to make some?
3....LOOK still has too high TAC expenses and whilst they remain above 60% as they do,LOOK are simply paying partners more to earn less as evidenced by more clicks but less CPC.
a failed model.
4.....LOOK is still burning cash and had just $40m as at the end of Q3 and will defintely be in breach of its SBLC covenants in Q4.
5.....LOOK is trading LOWER today then it was in March 06
6.....LOOK is trading LOWER now then when Hills took over.
as an overview and consistent with my opinion about LOOK.
Revenues have improved slightly and are growing BUT not at a sufficient rate to offset higher TAC and operating expenses.
LOOK has guided for its highest revenue gain in Q4 and i remian unconvinced this is simply NOT one off and as Q4 results are always the best results for search companies.......i am prepared to wait and see what evolves.
There are inherent risks trading LOK on the ASX and that is liquidity or trading volume.
There is simply not enough volume to be able to safely trade and in out of LOK imo.
Notwithstanding the above overview i feel there are still more risks and danger to the downside then there is potential for the upside.
LOOK it could be argued is over priced right now...IMO.
LOK
looksmart limited
Tokyo......sorry have not read this thread for ages.LOOK still...
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