With a current Market Cap ($24.20M) that's less than "cash", LOOK's non existent EV (enterprise value) must surely indicate to all, just how "under-valued" the stock really is.
The Co has been profitable over the past 4 or, 5 quarters.
The Co appears to be reporting it's revenues (these days) as being it's "Comprehensive Income" only - - meaning, it's the total 'commission' (only), that the Co receives - - in operating as a 'middleman' within it's own global marketplace.
As such, costly administration (in all of the paying and receiving between publishers and advertisers), is then (mostly) eliminated.This then saves on expenses!
Should Looksmart's gross revenue figure be as a result of retaining just 20% (of a total 'spend', within it's marketplace), a 5 times of this approx. annual spend (if this was determined as being Looksmart's true total revenues), would then equate to some (approx) $150M, in 2011.
A great comparison must surely be the recent Online Video Platform IPO listing, of BCOV. (Brightcove- And the "short" of the century, surely?)
Said to hold $17.23M in cash, Brightcove - with an initial $50 Million sought had actually boosted the amount of money it raised from its IPO, 'to up to $69 million and had said it had expected to sell shares for up to $12 a piece.'
Brightcove (who reported seeing $60.1 million in revenue for 2011), says that it doesn't expect to be 'in the black' until the end of 2012.techcrunch.com/2011/08/24/online-video-p.../
Brightcove actually saw it's stock reach a high of $15.76 on Friday and at $15.10, the company's market value, was placed at $397 million.
Looksmart, who ended the quarter (Q3 - 2011) with $25.6 million in cash, that includes some $0.9 million in restructuring charges and has a Market Cap of $24.20M? (Helloooo USA!!!)
Read more, 'si vous plait': http://www.faqs.org/sec-filings/111101/LOOKSMART-LTD_8-K/d249788dex991.htm#ixzz1n0i4wMPp
Just an opinion, as always.
ps; Update .. Closed on HOD @ $15.15 www.nasdaq.com/symbol/bcov/real-time
Disclosure: Long LOOK