Are Sites like showstash.com or movies.nabolister.com legal. p.s.: they don't host the movies by themselves or even uploaded them, they only hotlink to these movies (showing this movies in iframes).
They dont host their own. They link to warez. I dont think it is illegal, I do know that linking to warez gets you kicked out of AdSense.
Grey area. On the one hand, they're not hosting or uploading anything illegal. On the other hand, they're making it very easy for people to break the law by giving them links to illegally uploaded copyright infringing content. My opinion is that they're legal but it will vary. I don't think you will have much trouble running a site like this though, YouTube (in the early days) got nearly all of its traffic through illegal content, DailyMotion is the same now. Any right holders with half a brain cell looking to prosecute will go after the ones hosting rather than the ones hotlinking.