Potentially hidden gem

RENT.COM.AU LIMITED

First one Opens to 1.4 million non-agent landlords, providing listing services for rentals, holiday/short term stay, and share accommodations.


Market cap: $37m
Full diluted market cap: $63m
Cash on hand: approximately $7m
(last quarterly burnt $0.9m)

1. ESTIMATED VALUATION:

View attachment 121424
Source: October 2015 ASX Company presentation.
http://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTUQN6gi1pnKItJlJ2/k=



2. MANAGEMENT TEAM:
RNT has a solid team of high caliber management talent:

General Manager of eBay in Southeast Asia and Chief Sales and Marketing Officer for iiNet Limited and is currently the Country Manager of Airbnb Australia and New Zealand.

Mr Waters is a digital product and marketing specialist with over 15 years experience across media, telecommunications and banking. Most recently he was Head of Digital for News Corp in Western Australia where he was responsible for audience growth, product development and commercialisation of PerthNow.com.au.

Ms William is a marketing and brand expert with more than 15 years experience across a range of industries and geographies. Most recently she was based in Sydney as Head of Marketing Strategy for Woolworths Supermarkets where she complemented her consumer expertise with customer and shopper insights to deliver a number of exciting innovations from the fresh food people. Prior to that, she spent 12 years at Unilever and Cadbury expanding well loved brands such as Dove, Lux, Dairy Milk, Flake and others into new markets.

project lead for Vistime, a small footprint desktop collaboration program which has successfully listed on the Frankfurt stock exchange.

He was previously general manager of Eftnet Technologies and was instrumental in its successful ASX listing in 1999. He also managed the development of the 13PAID credit card payment gateway which won the Asia Pacific Yellow Pages IT&T WA “Banking and Finance” award in 2000.

Mr Tomich has extensive senior management experience and expertise in the real estate industry, with particular focus on property management, property-related software and website portal development. He was previously the CEO of Professionals Real Estate Group WA, the CEO of Key2 Limited an ASX listed company that specialised in residential property management, and Director of Property Management at one of WA’s largest and most successful real estate firms.


3. DEVELOPMENT OF WEBSITE:

RENT had already spent about $10m on developing rent.com.au

Rent had to combine 60 software systems, build relations with agents and "get ready" as Mr Woschnak describes it, with investors plugging in about $10 million along the way. He said it was another barrier to entry for any rivals to gain the significant market share of the estimated one million private landlords in Australia.

Now Mr Woschnak wants to make Rent the one-stop shop for all rental properties, with services added on to simplify the rental process.

"We've worked six years of trade shows and property management conferences," he said.
"And there was no point marketing to renters before we had significant content ready. Now it's all about
marketing, content growth, products and services and building that marketplace.

We are now on the first phase of our commercialisation stage." That first phase has been rapid. In June, the site had about 250,000 unique visitors. In October it saw 550,000.

Its share price has been rising steadily, and this week it wrapped up a $3.68 million raising with Computershare cofounder Chris Morris understood to have taken a "significant" lick.

UK property company Wainford Holdings is its main shareholder, with a 11 per cent stake.
Now the Rent gaze turns to revenue, which is virtually nonexistent. Currently all its listings are free, a feature which is no doubt helping driving its growth. A $99 all-in fee for listing will be introduced next year though Mr Woschnak does not see this as a tripping point for the company.

"There is significant track record of all the majors offering something free to get market share. The art is when do you start charging," he said.


4. GROWING AGENT NUMBER:

Total number of agents registered with RENT, grew to 6,503 as at 30 September 2015.
RENT charging plans:





http://promo.rent.com.au/in-the-media/Rent.com.au - The-West-Australian-21112015.pdf


5. TIGHT SHARE REGISTRY:
- Free floated 89m

Top 20 as at 20 October 2015:

This top 20 shareholder list doesn't include recently new issued shares of 13m on 23 November 2015.


6. SUPPORT from Mr Abercrombie & FXL

Andrew Abercrombie holds over 76m FXL shares, worthy $213m.
He invested in RNT under his superannuation fund, and increased holding during June and October 2015.

Also, FXL signed 5 year mutual agreements with RNT to provide RentBond product, and 5 year Marketing Agreement to facilitate the marketing of other Certegy and partner product offerings to RENT’s customers.

Support from a top wealthy and successful business man, and his ASX200 company, is extremely positive, IMO.


7. BROKER DATA:

Ord Minnett Limited, have done extremely well recently, they are the top 1 net buyer for BAL amongst the brokers; also they are top 2 (very close to top 1) net buyer for A2M amongst the brokers.

Ord Minnet Limited, is the Top 1 net buyer for RNT amongst the brokers.

Top net buyers for RNT:
- Ord Minnett: 3.31m




The 13m @28c were issued two weeks ago.
RNT had 30m shares being traded over last 10 days with average price of 44c.
I expect profit taking to be done.


Australia’s leading rental property web portal, has successfully completed the placement of 13,169,875 shares (“the Placement”) using its 15% placement capacity under Listing Rule 7.1. The Placement was completed at an issue price of $0.28 per share, raising $3,687,565 (before costs) which will allow the Company to accelerate its strategy of creating the complete rental marketplace.

Key Highlights:

 The Placement to sophisticated and institutional investors was heavily oversubscribed

 Price of $0.28 per share represents no discount to 10 day Volume Weighted Average Price
(“VWAP”) and 12.5% discount to the last closing price

 Funds to be used primarily on expanding marketing activities, further product development
and national sales capability to accelerate growth momentum

RENT Managing Director, Mark Woschnak, was pleased with the strong demand for shares and said he welcomed the support of existing and new shareholders in the successful placement and thanked them for their support, as the Company continued its strong progress.

“We have reached a number of our initial targets well ahead of schedule and with this additional capital
we are now well placed to accelerate our marketing, product development and sales objectives,” Mr
Woschnak said.

“The level of oversubscription for the Placement acknowledges the progress made by the Company in
a short period of time and recognises the scale of the market opportunity presented by RENT. We will
continue to focus on building the complete rental marketplace, pursuing the proven model of success demonstrated in other markets by leading sites such as SEEK, REA and Carsales.”



8. BROKER ARTICLES:

Motley Fool, normally are very conservative, surprisingly they have been very bullish about RNT.


Could rent.com.au be the next REA Group Limited?

By Sean O'Neill - June 23, 2015 |More on: REA


http://www.fool.com.au/2015/06/23/could-rent-com-au-be-the-next-rea-group-limited/


On 2 December, 2015, another article updated, "initial success is promising and expect RNT share to head higher" while RNT was trading at 55c!

http://www.fool.com.au/2015/12/02/i...ykel-healthcare-corp-ltd-and-rent-com-au-ltd/


9 . REA Share price history:
Current market cap: $6.8b
September 2001: 4.9c (following dot crash)
December 2007: $7.45 +15204%
November 2008: $2.95 -60% during GFC
December 2015: $52.81 +1690%

REA, share price has skyrocketed by 107,675% since September 2001.




10. FUTURE PLAN:
View attachment 121427
Expanding to commercial rentals, using owned domain - Lease.com.au;
And expending into Asian market potentially.


Almost all information sourced from official ASX announcements and RENT.com.au websites, and other sources with links.
The whole post is MERELY for sharing information, NOT considered as Advice.
Please do your own research.
accaeric