Investors Turn Cold Shoulder to LookSmart
The company faces possible delisting after its stock stays in the doldrums for more than 30 days.
Despite a booming market for paid search, LookSmart’s stock has lingered below the $1 mark for more than 30 days, prompting Nasdaq to warn the company of possible delisting.
To continue to be listed on the exchange, LookSmart’s shares must trade above $1 for at least 10 of the next 180 days. The bad news comes as other players in search, such as Google and Yahoo, report strong growth.
Potential remedies for LookSmart include a reverse stock split and a move to the Nasdaq Small Cap Market.
Despite a boom in paid search ad spending, LookSmart has never quite recovered from losing MSN as a distribution partner back in October 2003.
More recently, the company said it failed to pursue the types of advertisers it would need to capitalize on search volume. That disappointing news followed the appointment of a new CEO and a management shakeup — changes aimed at reversing the company’s fortunes.
