LookSmart, Ltd. (LOOK) operates as an online advertising and technology solutions company. It develops, markets, and sells advertising products to text and display advertisers and advertising agencies.

It reported a strong first quarter in which revenues grew 47% to $17.5 million. LOOK’s strategy of focusing on the LookSmart online ad network is paying dividends. Paid clicks grew over 60%, which drove gross margins as well.

Management is showing some serious skill as well. Cash per share is almost $2 per share, which is almost half of its stock price. This makes the stock even better value than it appears. Management has slowed down its cash burn rate, which should lift its valuation going forward.

Obviously, this is a recommendation for more aggressive investors out there. It is not suitable for more conservative portfolios. This microcap has no debt and is trading at a price/book ratio of 1.69. This stock has the potential to hit $6-$7 over the next year, which would be a return of more than 50%.

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