Good balanced post Aventurine, thanks.
I agree, they still have a few items to iron out, but I think (hope) this new CEO appears to have a much better focus moving forward. First thing I want to see from here, and it should be their priority, is getting this company to break even, followed quickly by profitability. Commissions starting to come in, so that's a good start.
It will be interesting to see how many properties the team is able to put on their Sydney Rent Roll over the course of a year and how many other states that they're not currently in, they can add new rent rolls across. I like this organic approach, as rent rolls can add up pretty quickly and as long as these are profitable, then I'm all for this diversified income stream. Lead conversion was the one area they needed a LOT of work on. Hopefully they're addressing this item as a high priority with the new head guy and head of sales team. What I'd like to see is the number of developers increase, showcasing their products. More choice for customers and a win win for both parties. I'd also like to see what else they can extract from the developers side that could also present as a win win scenario. Improving sales is great and so too is the increase in the average commission, but I'd like to see some additional diversification soon that doesn't eat into margins.
I'm also interested in what new technology solutions and markets they can access. I've been quietly doing some research on one of the largest shareholders that you mentioned in your post. Check out their website
http://www.Mcraeinvestments.com.au . Very interesting hey? But it's the
Australian FANG website website that has my attention. He is Chairman of FANG Australia, and FANG is the largest property portal in China. They have an overseas property section but it's the Australian section that could offer enormous leverage. If memory serves me correct, IBN have rights to FANG. They could potentially showcase Australian properties via IPG. Lot of synergies.
IBN's ‘Online Reservations System’ is very interesting. Metrics are starting to look very promising. 13% of sales over the last 2 years came from online or over the phone, which is a great achievement so early in I thought. I'd imagine the R&D aspect of the system will play an important role to compliment the existing channels. How far off are these and will they be completed in house or through third parties, is the question? What are IBN's goals with regards to this business line as part of the overall business model? I'd like a little more colour around this. I think this has enourmous potential for scalability, not only nationally but globally.
I've taken note of the company's diversification products and services currently in place. The IBN Home Loans (Mortgage Referral Services) is a very interesting aspect of the overall business model. I note that Mr. Warren McCarthy's previous experience with LJ Hooker involved the integration of Home Loans into the franchises. I hope Mr. McCarthy plays an important role with regards to this aspect of the company's business model. Again, I see enormous scope here.
Finally, I am really impressed with the front end website, but it's the back end aspect of the technology that I have my attention on. All the potential complimentary channels that can bolt on to the existing technology is exciting. This is definitely a platform play and this imv is what investors are missing. It doesn't get better than this at 0.001c lol!
Let's see what this new CEO brings to the table and how it all unfolds from here.
Tony
