Make sure you don't blink an eye here...
Timing is of the essence - so if you do, it may be too late!
Immediately turn your attention to LOOK (Looksmart, Ltd.).
This NASDAQ-listed company provides digital advertising solutions for search and display advertising customers in the United States, Europe, the Middle East, and Africa.
LOOK’s Clickable platform helps brands and agencies measure marketing ROI through a customer’s lifetime by connecting critical marketing and advertising products and services.
Its platform also allows customers to manage paid, owned, and earned media by providing a suite of solutions for social media marketers, including publishing, monitoring, data storage, compliance, management, ad placement, and analytics.
LOOK’s Clickable Analytics provides its customers with the ability to cross channel marketing and audience data from various sources into one unified, flexible, and customizable platform.
The company, through its proprietary Web-based advertising auction platform, the AdCenter, provides search, social, display, mobile, and video advertising solutions, as well as analytic, moderation, and publishing workflow solutions across the entire social media marketing ecosystem.
LOOK also offers a suite of customizable search advertising management tools and solutions command and control over revenue diversification and growth via the AdCenter for publishers; a customizable set of services and technology to integrate multiple sources of advertisers; and access to a backfill of advertisers.
The company also offers cloud based services, including a private cloud ecosystem comprised of multi-vendor enterprise technologies and capabilities; ShopWiki, a consumer shopping search engine that offers results for both stores and products; and a LookSmart-branded search engine. Its customer network include intermediaries, direct advertising customers, and agencies, as well as self-service customers.
Market Outlook:
Marketers are expected to spend $540 billion globally on advertising this year.
In 2015, search engine marketing (SEM) will continue to capture the largest share of online spend at 47%, or about 14% of the average firm’s total marketing budget.
Digital ads will lead the way for global media growth in the next four years, accounting for 33% of total advertising revenue, nearly catching TV in the process. TV advertising will generate $173.7 billion worldwide in 2014 and grow to $214.7 billion in 2018. During the same period, Internet advertising will grow from $133 billion to $194.5 billion.
By 2018, Internet advertising will be poised to overtake TV as the largest advertising segment. As recently as 2009, Internet advertising revenue was $58.7 billion and TV advertising revenue was more than twice as big at $132.0 billion. But Internet advertising revenue will rise at a 10.7% CAGR to reach $194.5 billion in 2018, just $20 billion behind TV advertising.
Recent Developments:
LOOK has taken a major step toward profitability in the past year.
The company's most recent financial filings show that it has decreased in loss in operating income for 4 consecutive quarters.
On April 23, 2015, LOOK announced that they have entered into an Agreement and Plan of Merger (the "Merger Agreement"), whereby Pyxis will become a publicly listed company as a result of the merger between LookSmart, Ltd. ("LookSmart") and Pyxis' wholly-owned subsidiary, Maritime Technologies Corp., a Delaware corporation. In addition, LookSmart will spin off its existing business into a new entity called LookSmart Group, Inc. ("LookSmart Group").
Pyxis Tankers Inc.
Pyxis Tankers Inc. is a newly formed international maritime transportation company with a focus on the tanker sector. At the consummation of the merger with LookSmart, Pyxis' fleet will be comprised of six double hull product tankers with an average current age of four years and that are employed under a mix of short- and medium-term time charters and spot charters. Pyxis will acquire these six vessels prior to the merger from an affiliate of its founder and chief executive officer, Mr. Valentios ("Eddie") Valentis. Four of the vessels in the fleet will be medium-range, or MR, product tankers, three of which have eco-efficient or eco-modified designs and two will be short-range tanker sister ships. Each of the vessels in the fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel and fuel oil, as well as other liquid bulk items, such as vegetable oils and organic chemicals.
Pyxis' principal objective will be to own and operate its fleet in a manner that will enable it to benefit from short- and long-term trends that Pyxis expects in the product tanker sector to maximize its revenues and to enhance returns to its stockholders. Pyxis intends to expand the fleet through selective acquisitions of modern product tankers in a manner that is accretive to stockholder value. It expects to employ its vessels primarily through time charters to creditworthy customers and on the spot market. Pyxis intends to continually evaluate the markets in which it operates and, based upon its view of market conditions, adjust its mix of vessel employment by counterparty and stagger its charter expirations. In addition, Pyxis may choose to opportunistically direct asset sales when opportunities exist for subsequent accretive vessel acquisitions and conditions are primed to generate attractive returns for its stockholders.
Mr. Valentis commented, "A publicly-traded growth-oriented product tanker company will be created upon closing of the merger that we believe is unique among our competitors. We at Pyxis Tankers look forward to communicating to the LookSmart shareholders and the investment community about our value creation story and growth opportunities."
The Transactions:
Spin-Off
Prior to the execution of the Merger Agreement, LookSmart transferred all of its businesses, assets and liabilities (including its Clickable, Ad Center and web search businesses) to LookSmart Group. Upon completion of this spin-off, LookSmart Group, will be 100% owned by LookSmart's stockholders of record.
Merger
Under the terms of the Merger Agreement, LookSmart will merge with and into Maritime Technologies Corp., which will be the surviving corporation in the merger and will continue to be a wholly-owned subsidiary of Pyxis. Upon completion of the merger, each share of LookSmart's common stock issued and outstanding immediately prior to the merger will be exchanged for the right to receive a certain number of shares of Pyxis' common stock equal to $4,000,000, as adjusted for the price and number of LookSmart's outstanding common stock as of the date that the merger becomes effective. After the completion of the merger, and assuming no adjustments pursuant to the terms of the Merger Agreement, the public stockholders of LookSmart are expected to own approximately 5.66% of the total issued and outstanding common stock of Pyxis.
Pyxis intends to apply to have its common stock listed on either the Nasdaq Capital Market or the NYSE MKT under the symbol "PXS."
LookSmart's Chief Executive Officer, Michael Onghai, stated, "We are very pleased to give our stockholders this value enhancing transaction. Our stockholders will have an opportunity to also own shares in Pyxis without diluting their existing ownership in LookSmart and its subsidiaries including Clickable, Inc., all of which will be transferred into a new entity called LookSmart Group, Inc. This transaction enables LookSmart Group to remain public with lower costs of being public and more flexibility for its fast-growing subsidiaries to raise capital with alternative sources of financing such as venture capital. At the same time, this transaction offers Pyxis a chance to be listed on a major stock exchange."
The Make Whole Record Date:
In the event that subsequent to the Merger, Pyxis completes a financing which results in gross proceeds to Pyxis of at least $5,000,000 (a "Future Pyxis Offering") at a valuation lower than the valuation ascribed to the shares of common stock received by LookSmart stockholders pursuant to the Merger Agreement (the "Consideration Value"), Pyxis will be obligated to make "whole" the LookSmart stockholders as of April 29, 2015 (the "Make Whole Record Date") by offering such LookSmart stockholders the right to receive additional shares of Pyxis common stock to compensate the LookSmart stockholders for the difference in value of their Pyxis common stock.
In addition, should Pyxis fail to complete a Future Pyxis Offering within a date which is 3 years from the date of the closing of the Merger, each holder of the Company's common stock who has held such stock continuously from the date of the Make Whole Record Date until the expiration of such 3 year period (the "Legacy LS Stockholders") will have a 24-hour option beginning at the end of the 3 year period to require Pyxis to purchase from such Legacy LS Stockholders a pro rata amount of Pyxis common stock that would result in aggregate gross proceeds to the Legacy LS Stockholders in an amount not to exceed $2,000,000; provided that in no event shall a Legacy LS Stockholder receive an amount per share greater than the Consideration Value.
Technical Analysis:
In the stock market, the trend is your friend...
The last time LOOK was trading in the 60-cent price range, it exploded above $2.26 per share for +276.67% in profit.
Finding a bargain this good is like spotting a unicorn. It just doesn't happen.
Don't let LOOK's $0.65 share price fool you either.
This stock can move and move fast.
According to Yahoo Finance, the float for LOOK is just 1.83M.
We did the quick math, and that equates to only $1.2M worth of shares available for trading.
LOOK is the perfect recipe for a breakout pick.
Don't forget that our last pick in this sector jumped up over +165% over the course of 2-weeks.
Will lightning strike twice? We think so.
We love everything that LOOK is showing us right now...
Pull it up on your trading screen right now, take a serious LOOK and consider grabbing shares of this exciting company before its next explosive move higher!
To learn more about LOOK, please visit their website(s): www.LookSmart.com
