I have had my new allocation confirmed by post and Etrade has correctly consolidated my existing SLT holding and labeled them now as RNT, ready for tomorrows re-listing, but I won't be selling.
I note among the many announcements made by RNT on the 19th July was the Top 20 list. Over half of the company is owned by this group, with the Top 10 owning nearly 42%.
IMO most of these will be looking at keeping a stake in this potentially monopoly busting website and will be looking at the huge potential revenue a competitor to Realestate.com could be producing in 2 years time.
Our current market cap is set at $20 million, some 260 times smaller than the $5.2 Billion that Realestate.com is valued at. Considering we are already scoring 230,000 unique visitors a month ( and bearing in mind, that's all a web site really is, "visitors and users") that means as a ratio of user value alone, Realestate.com has to get 60 million visitors per month to be comparable. Now that is everyone in Australia, twice over, so something is very much out of sync here.
I know I'm playing with figures here, but it's hard not to when you look at these two web sites side by side. One is expensive and exclusive, allowing only Agents to advertise on it and the other is cheap and totally inclusive to all.
I feel it will be only a matter of time until there is a gradual shift across to Rent.com.au and with it income and profits will follow.
Regards Madoff
SLT Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
