Replies to post #5950 on Looksmart Limited (LKST)

[aimforsimon]

Comments by MSN not cancelling contracts derisks the company significantly. Not is is more of a valuation issue.

Rally will push past fundamental value.

Will be watching to buy now. :)

[Smuggler]

TG............loaded question all right.

Lets just analyse what we know.

1. By any measure we all know LOOK is grossly undervalued based on forward earnings.

2. We all know and was reaffirmed last night this sector is undergoing significant consolidation.

3. We all know the upside in growth in this sector is simply amazing and to a degree not quantifiable


Now to LOOK specifically

1. We all know the major weakness to the LOOK model is NO other major tier one partner

2. We all know the doubt over MSN resigning is a further risk to LOOK.

Now on balance..........we can expect LOOK to resign MSN.

We can expect LOOK to sign a mjor new partner.

We can expect LOOK to beat its own Q2 guidance (as FWHT suggest they will)

We can expect LOOK to remain pre eminent in its sector as it is spending money now to maintain that position.

Just about every other company in the sector is doing NOW what LOOK initiated 12 months ago..........LOOK acquired Wisenut 12 months ago.......LOOK acquired Primary Knowledge 12 months ago.

All these other players have initiated these moves this year........so LOOK has the commercial advantage.

And finally we all know LOOK is such a good operation it could be bought out and to date there is NO premuium on LOOK if this was to occur.

In summary.........LOOK has brilliantly positioned itself for remaining #1 in its sector in an industry which is growing at an amzing rate and is simply (LOOK) undervalued.

How long will it last?

IMHO.........it has NOT even started!