The earnings report was horrible. Simple as that. The only part of the press release that is encouraging is as follows:
Commenting on the results, Dr. Jean-Yves Dexmier, Chief Executive Officer, said, "We are discontent with our performance and results in the third quarter. The Special Committee of the LookSmart Ltd. Board of Directors continues to seek and evaluate indications of interest and other strategic alternatives."
It is hard to imagine that the Board will not push for a sale of the company. Anything else would be a complete breach of fiduciary duty at this point.
Couldn't have said it better myself.
I do not own shares anymore (thankfully). The management belongs behind bars. They have only destroyed value and refused the one chance for investors to actually exit at an ok price. The situation sucks for PEEK. I feel bad for them.
For the record, I do own shares here. I started a position in the high $0.70s and low $0.80s based on the net value of company cash with a catalyst provided by the tender offer.
I was surprised to see how much value was destroyed in Q3 but I still think it is more than likely that this thing gets sold. Investors are protected from downside in the meantime by the aforementioned cash.