August 2, 2004
SpeculatingStocks.com Stock Pick: LookSmart, Ltd. (LOOK)
Stock Price: $1.79 (short-term strong buy)
LookSmart, Ltd. is a leader in commercial search services and a developer of innovative web search solutions. Looksmart.com provides highly relevant search results through a distribution network that includes top portals and Internet service providers.
LookSmart should receive a nice jump along with other search stocks from the upcoming Google IPO. Search engine companies have learned that they can make big money through allowing other businesses to market through their search. LookSmart and Google do not advertise on their front page in contrast to Yahoo. It doesn't seem to be hurting them too much.
LookSmart is focused on reducing costs and returning to profitability. Q2 2004 revenue guidance was $18-$20 million. They exceeded on the high end by $1.3 million reporting Q2 revenue of $21.3 million. There is no reason why they should not continue to exceed expectations with their new strategic initiatives to drive paid listings.
SpeculatingStocks.com Target Price: We expect LOOK to hit $2.50 by the end of the year.