# IPP - iProperty Group



## ormond (16 June 2010)

Just wondering if anyone has had a look at IPP.
Have poached several REA executives recently and certainly looks to have a lot of upside.

Listed on the Australian Securities Exchange, IPGA Limited (ASX:IPP) owns Asia’s No. 1 network of property websites under the iProperty.com umbrella brand. The Company is focused on developing and operating Internet-based real estate portals with other complementary offerings in Asian markets. It currently operates consumer and business online property portals in the markets of Singapore, Malaysia, Hong Kong, India and Philippines. With further expansion planned, IPGA is continuously working to capitalise on its market-leading positions and the rapidly growing online property advertising market throughout the region.


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## robusta (14 November 2012)

Picked up some today, probably bought way too early again sp down straight after I bought, anyway...

This business while not making any money at the moment is following in the footsteps of REA, with leading portals in Indonesia, Malaysia, Singapore and Hong Kong. They have recently had a breakthrough in the HK market and are a clear leader in Indonesia while Malaysia is actually making money. The are still trying to build a clear lead and network effect so there are risks but if successful the competitive advantage and pricing power in these markets should be satisfactory.


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## skc (14 November 2012)

robusta said:


> Picked up some today, probably bought way too early again sp down straight after I bought, anyway...
> 
> This business while not making any money at the moment is following in the footsteps of REA, with leading portals in Indonesia, Malaysia, Singapore and Hong Kong. They have recently had a breakthrough in the HK market and are a clear leader in Indonesia while Malaysia is actually making money. The are still trying to build a clear lead and network effect so there are risks but if successful the competitive advantage and pricing power in these markets should be satisfactory.




Have you looked at OTH? Same space and very useful product.

I like IPP's spread in Asia, but I don't know enough about those property markets to know how profitable they'd be over there.


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## robusta (14 November 2012)

skc said:


> Have you looked at OTH? Same space and very useful product.
> 
> I like IPP's spread in Asia, but I don't know enough about those property markets to know how profitable they'd be over there.




Cheers just had a glance at the numbers on Comsec, will add it to the watch list and dig deeper thanks.


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## Ves (14 November 2012)

Careful with this one. I had a look recently and lots of factors that put me off, but the major ones are:

I'm unable to understand the cultural influence, politics and economics in the Asian countries that they operate in

Management is suspect - the major shareholders seem to be playing political games at the moment - take a look at the sudden resignation of the chairman (lots of rumours surround this)

It's hard to predict with any certainty firstly when they will make a profit, and if so, how much? (ie. impossible to value)


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## McLovin (15 November 2012)

skc said:


> Have you looked at OTH?




This is an interesting company, not so much because it's going to shoot the lights out but for what it might do to REA. Listings are free and everything is made back with banner advertising. I reckon all these free sites are at the very least going to eat away at the big, big margins the internet incumbents have. It's probably one of the advantages of the internet, a site like Gumtree can run on a shoestring but actually reaches a large audience and is 100% free.


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## skc (15 November 2012)

McLovin said:


> This is an interesting company, not so much because it's going to shoot the lights out but for what it might do to REA. Listings are free and everything is made back with banner advertising. I reckon all these free sites are at the very least going to eat away at the big, big margins the internet incumbents have. It's probably one of the advantages of the internet, a site like Gumtree can run on a shoestring but actually reaches a large audience and is 100% free.




I must say I use OTH as much as REA these day. REA still has a much better website, but I go for OTH for its historical prices.

The only reason I have not invested OTH (although I should have traded it) is that I don't know what's stopping REA from putting historical prices up on its site. That is OTH's only advantage and doesn't appear to be a sustainable one.


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## ROE (15 November 2012)

ormond said:


> Just wondering if anyone has had a look at IPP.
> Have poached several REA executives recently and certainly looks to have a lot of upside.
> 
> Listed on the Australian Securities Exchange, IPGA Limited (ASX:IPP) owns Asia’s No. 1 network of property websites under the iProperty.com umbrella brand. The Company is focused on developing and operating Internet-based real estate portals with other complementary offerings in Asian markets. It currently operates consumer and business online property portals in the markets of Singapore, Malaysia, Hong Kong, India and Philippines. With further expansion planned, IPGA is continuously working to capitalise on its market-leading positions and the rapidly growing online property advertising market throughout the region.




show me an online business that do well in Asia that owned by foreigner?
even the juggernaut Google has a hard time in China and doesn't earn much

sometimes a good business and idea need the right business environment to prosper...
otherwise it's a pipe dream most of the time ...

Asia is a very different operating environment .... not easy to be successful....


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## McLovin (15 November 2012)

skc said:


> I must say I use OTH as much as REA these day. REA still has a much better website, but I go for OTH for its historical prices.
> 
> The only reason I have not invested OTH (although I should have traded it) is that I don't know what's stopping REA from putting historical prices up on its site. That is OTH's only advantage and doesn't appear to be a sustainable one.




I think RE agents like having the ability to control which prices are put up and which aren't. Those marketing flyers from agents never have the sold prices on them although they always have a recently sold property. 

OTH does a trade off, free ads but they give potential buyers more information. So I guess they're dragging agents in by lowering costs and buyers in buy offering more data. Eventually re.com.au will respond, IMO.


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## robusta (15 November 2012)

Ves said:


> Careful with this one. I had a look recently and lots of factors that put me off, but the major ones are:
> 
> I'm unable to understand the cultural influence, politics and economics in the Asian countries that they operate in)




To tell you the truth neither do I, but I understand property investment is a high priority and can see the revenue growth of IPP. 

Just a example the rental yield in Hong Kong went up 10% last year.



Ves said:


> Management is suspect - the major shareholders seem to be playing political games at the moment - take a look at the sudden resignation of the chairman (lots of rumours surround this)




Have not heard any of this but the ex chairman controlled the third largest shareholding and the ex vice chairman (now Chairman) controls the largest stake (along with another board member via a holding company). I will watch with interest.



Ves said:


> It's hard to predict with any certainty firstly when they will make a profit, and if so, how much? (ie. impossible to value)




True but the same could be said of REA, CRZ, WEB, et al a while ago. I agree it is certainly a risky investment.


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## robusta (15 November 2012)

ROE said:


> show me an online business that do well in Asia that owned by foreigner?
> even the juggernaut Google has a hard time in China and doesn't earn much
> 
> sometimes a good business and idea need the right business environment to prosper...
> ...




I take your point ROE but while they are listed on the ASX, the businesses are run from Asia. They are a clear number 1 in Malaysia, it will be very interesting to see how Indonesia goes seeing they have recently bought the number 1 and number 3 portals.


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## Ves (15 November 2012)

robusta said:


> True but the same could be said of REA, CRZ, WEB, et al a while ago. I agree it is certainly a risky investment.



I could be wrong, it's not so much that it is identifiably risky - it is more that your decision is based more on HOPE than anything else (from what I can tell - I admit you may know more than you are letting on). The hope lies in the fact that you have seen other businesses in online capacities take off and earn massive amounts of money without much capital.  It doesn't always work like that - take a look at all of the businesses that did not make money.  For the three that you named, there are many, many, many more that went no where fast - especially in Asia.  

This is too speculative for me - I find it best not to swing at the next big thing, but I'm pretty boring!


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## robusta (15 November 2012)

Ves said:


> I could be wrong, it's not so much that it is identifiably risky - it is more that your decision is based more on HOPE than anything else (from what I can tell - I admit you may know more than you are letting on).




Never make the mistake of thinking I know more than I am letting on, my recent investment in MCE should be testimony to that.



Ves said:


> The hope lies in the fact that you have seen other businesses in online capacities take off and earn massive a mounts of money without much capital.  It doesn't always work like that - take a look at all of the businesses that did not make money.  For the three that you named, there are many, many, many more that went no where fast - especially in Asia.




The other business I looked at with the same founder is recently listed ICQ, but I am happier taking the risk in IPP considering the revenue growth and established market leadership. (in some markets)

The Hong Kong portal is not the market leader but the leading Chinese language portal.



Ves said:


> This is too speculative for me - I find it best not to swing at the next big thing, but I'm pretty boring!




That is what I like about you Ves, maybe we should team up if there were not too many arguments, the middle ground could be the best.


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## Ves (15 November 2012)

McLovin said:


> OTH does a trade off, free ads but they give potential buyers more information. So I guess they're dragging agents in by lowering costs and buyers in buy offering more data. Eventually re.com.au will respond, IMO.



OTH was pretty cheap in the 30 cent mark.  I couldn't quite get my head around the industry dynamics and barriers to entry however.

Remember, OTH also provides software to real estate agents which is separate from its listings business. That provides realiable cash flow to pump into the development of their web software and portal (and marketing). It remains to be seen what they can make out of this.  REA & OTH are different businesses, that overlap in some areas IMO.


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## Ves (15 November 2012)

robusta said:


> The other business I looked at with the same founder is recently listed ICQ, but I am happier taking the risk in IPP considering the revenue growth and established market leadership. (in some markets)



Market leadership isn't always the whole story:  industry profitability (on a regional scale) and barriers to entry have a lot to say about the true meaning of this.  As Buffett often said: The best company in a poor industry still makes a bad investment.

It's hard to get enough information on the Asian real estate industry in the companies that they operate in to get much bearings on these two factors IMO.  

edit: This company also has a market cap of $166 million and does not make a single cent of profit at the moment.  Another thought to ponder!



> That is what I like about you Ves, maybe we should team up if there were not too many arguments, the middle ground could be the best.



I am probably better at telling you what I would not invest in than what I would!  One list is massive, the other is pretty short!  There are two categories to the 'invest in' list:  "Inevitables" and "Highly probables."  I read way too much Buffett. 

Good luck though - you are putting a lot more effort into your stock selection than most people.  You will learn a lot by having a go - that's for sure!


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## ROE (15 November 2012)

robusta said:


> I take your point ROE but while they are listed on the ASX, the businesses are run from Asia. They are a clear number 1 in Malaysia, it will be very interesting to see how Indonesia goes seeing they have recently bought the number 1 and number 3 portals.




I agree but this mean little as number #1 in those countries if there isn't much money to be made in that industry..

Asian buy and Sell Real Estate differently most through people who know people who want to buy and sell properties, they dont go to agents or spent big on advertising...

plus the success rate for cracking those market is very very small and they do things differently
you need local knowledge, you need local contacts, you need to talk to the right people, you need to know this person who will introduce you to another person and so on and so for...

if it can crack that market I am happy for you but my rule of thumb spruiking China and India I'm not interested..
only interest in show me the money....free cash flow...margin....return on Capital etc...


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## Adrian. (17 November 2012)

I've had IPP on my watchlist for a while now but have not taken the plunge yet - mainly to do with global economic conditions rather than the company itself. I agree that this is a speculative stock. It's not one for purely value investors. 

One point I would make is that this is not just a China/India centric company in my opinion. It does have businesses in Hong Kong, Macau and India but also has businesses in Indonesia, Malaysia, Singapore and Philippines. It also has a regional business focused on commercial and industrial real estate.

Most of the businesses have growing revenue and website popularity. While the management politics is a bit of a worry they seem to have a clear plan and solid understanding of the markets they operate in. They have a strong focus on mobile access and seem to be capable of signing up real estate agents to use their sites.

This company is a punt but they seem to be the leader at the moment so if anyone is to succeed hopefully it's IPP.

PS, I pretty much invest based on gut instinct so don't follow me.


Here is a recent presentation by the CEO if you're interested.

http://www.brrmedia.com/event/105798/shaun-di-gregorio-ceo


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## robusta (20 November 2012)

Ves said:


> Market leadership isn't always the whole story:  industry profitability (on a regional scale) and barriers to entry have a lot to say about the true meaning of this.  As Buffett often said: The best company in a poor industry still makes a bad investment.
> 
> It's hard to get enough information on the Asian real estate industry in the companies that they operate in to get much bearings on these two factors IMO.
> 
> ...




Is it possible to read too much Buffett??? I don't think so.

Time will tell with IPP, there is a lot of money in Asian real estate advertising, and I think IPP has a shot at gaining a competitive advantage if it has not got one yet. The first mover's in this industry have a history of success.


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## robusta (2 April 2013)

Simon Baker had a apparent falling out with Patrick Grove and resigned as chairman of IPP as well as ceasing to be a substantial shareholder last year.

IPP have been reported in the media to have formed a partnership with a company called Real Estate Investar. No announcement to the ASX has been made to date.

http://www.bernama.com.my/bernama/v7/bu/newsbusiness.php?id=938514

Anyway the chairman and cornerstone investor in REI is Simon Baker.

http://www.realestateinvestar.com.a...&sfid=BB4B89144C3C412DB24B82DC9B85998D&tier=1

Back to Patrick Grove, he has been featured in BRW magazine as a 'Young rich star'

http://www.brw.com.au/p/investing/young_rich_star_patrick_grove_plans_F1pyDZtF3rT7VUPjO66s8H

It remains to be seen if he can continue to make his shareholders rich.

Some more wisdom from Patrick in Business Today telling us how to succeed in Asia.

http://www.businessday.com.au/small...asian-century-opportunity-20130402-2h3r8.html


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## robusta (15 July 2013)

Tading conditions have been tough in Malaysia, Singapore and Hong Kong but the growth continues...

http://www.asx.com.au/asxpdf/20130711/pdf/42gztgm0ddfjmg.pdf


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## robusta (14 August 2013)

So REA released thier results yesterday and announced they had a shed load of cash and were looking to buy something. IPP's sp increased on large volume. Personally I hope they don't buy it as I think there is a lot of growth to come from this business.


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## Country Lad (14 August 2013)

robusta said:


> IPP's sp increased on large volume.




Yep, a nice breakpout from my favourite setup.

Cheers
Country Lad


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## Country Lad (14 August 2013)

robusta said:


> IPP's sp increased on large volume.




Yep, a nice breakout from my favourite setup.

Cheers
Country Lad

View attachment 53826


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## robusta (14 August 2013)

Country Lad said:


> Yep, a nice breakout from my favourite setup.
> 
> Cheers
> Country Lad
> ...




In ten years time I reckon this could be just a little blip on a chart that goes from the bottom left to the top right at a nice angle. Take a look at the REA chart over a ten year period and tell me Asians don't like to invest in property like the rest of the world. Anyway just my opinion and still a lot of risk out there in the big bad financial markets.


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## McCoy Pauley (16 August 2013)

robusta said:


> In ten years time I reckon this could be just a little blip on a chart that goes from the bottom left to the top right at a nice angle. Take a look at the REA chart over a ten year period and tell me Asians don't like to invest in property like the rest of the world. Anyway just my opinion and still a lot of risk out there in the big bad financial markets.




I studied this company's Philippines operations for an assessment in a post-graduate course on entrepreneurship and innovation earlier this year, though it was more from a cultural/societal aspect than any business operational perspective.  Based on what the company publicised through its Filipino operations, it does not charge the real estate agents anything to list properties on their website.  I'm not sure whether this is a short-term move to build volume and a critical mass, but I thought it was an interesting move.

I agree that Asians like to invest in property, but the question that one must ask him/herself is where in the world would they like to invest?  For all their societal advances (especially in the Philippines, Malaysia, Indonesia and the like), property laws in those countries are not the same as property laws in Australia, US, etc.  Investing in property other than the main residence is investing in security, and perhaps security of tenure in countries in which IPP operates is not quite as strong as security of tenures in other countries.

I'm keeping an eye on this company, as I think it has promise, but not only is it dealing with its own business issues, but it's also dealing with cultural differences.


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## pavilion103 (31 August 2013)

Breakout


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## Country Lad (22 September 2013)

Looks even better now.

Cheers
Country Lad


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## piggybank (30 September 2013)

Country Lad said:


> Looks even better now.
> 
> Cheers
> Country Lad
> ...




Gone on with it C/L since your last posting If anyone had bought it at the beginning of this tax year, would have made a nice 100%+


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## Country Lad (22 October 2013)

Although it is up only 1 cent today it has had a strong day.  Market sentiment is strong at the moment and I don't know whether the bots are helping or hindering.  It has certainly looked after me since the first buy 2 months ago.

Cheers
Country Lad


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## robusta (22 October 2013)

A two part article by Simon Baker on the turnaround of this business.

Part 1

http://www.propertyportalwatch.com/2013/03/the-turnaround-of-the-iproperty-group-part-1/

Part 2

http://www.propertyportalwatch.com/2013/03/the-turnaround-of-the-iproperty-group-part-2/


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## piggybank (9 November 2013)

robusta said:


> A two part article by Simon Baker on the turnaround of this business.
> 
> Part 1
> 
> ...




Thanks for that Robusta - a good read.

Hi CL,

Are you still in the stock after it's recent fall? Looks like it has got a second wind since bouncing off the $1.77 mark and is only a bees dick away from creating a new ATHC...

Regards
PB


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## Country Lad (10 November 2013)

piggybank said:


> Hi CL,
> 
> Are you still in the stock after it's recent fall? ................




Only just.

Cheers
Country Lad


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## piggybank (10 November 2013)

Country Lad said:


> Only just.
> 
> Cheers
> Country Lad
> ...




Hi Country Lad,

Only just = making extra money for more travelling

Enjoy the rewards...

Cheers
PB


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## robusta (27 January 2014)

Well the stock price just keeps on going up and up. Cash flow positive for the first time in the most recent quarter, makes me feel a whole lot more comfortable holding.

http://www.asx.com.au/asxpdf/20140124/pdf/42m9bjhz5c4s73.pdf


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## piggybank (27 January 2014)




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## piggybank (18 February 2014)

The company released their 2013 result today. It iProperty Group was profitable in 2013 as well as strong revenue growth and positive operating cash flow in Q4. The presentation can be viewed by clicking on the link below - enjoy.

http://stocknessmonster.com/news-item?S=IPP&E=ASX&N=782774

​


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## robusta (18 February 2014)

Nice result, I would like to see them cash flow positive for a full year. Solid 23% annual revenue growth from continuing operations. IPP just need to concentrate on the revenue expanding, try to grow and consolidate market dominance and the "network effect'. REA is a fantastic blueprint to follow, hopefully this business can execute as well while avoiding being taken over.

The trick with this business is to get the lions share of real estate listed, customers will search where the most properties are so more real estate will be listed on the site. A virtuous circle. If they can achieve this revenue will compound much much faster than the costs and profits will follow.


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## Adrian. (21 February 2014)

Yeah it seems to be a really good result. 

Malaysia seems to be really firing and reaching that critical mass. Hong Kong is on the way too but Singapore is a bit of a worry and I guess Indonesia was always more a long term opportunity. Still, Malaysia and to a lesser extent Hong Kong are where the near term future seem to be.

The growth opportunities are huge here but the company is on P/E of 312!! I know the history of REA - and this is not REA - but this seems crazy. I'm not sure weather to take my initial investment out or just let the whole thing run. 

Who know's what the market will do in the short term but over the long term this has massive potential. This really seems like a massive opportunity but still a big risk. IPP does have competitors but I do like the way it is reasonably diversified among a few countries and Malaysia has shown that it has good potential on it's own!

I will be holding this one but may look to take out my initial investment to remove some of the risk. 

Tough call.


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## robusta (23 February 2014)

Adrian. said:


> Yeah it seems to be a really good result.
> 
> Malaysia seems to be really firing and reaching that critical mass. Hong Kong is on the way too but Singapore is a bit of a worry and I guess Indonesia was always more a long term opportunity. Still, Malaysia and to a lesser extent Hong Kong are where the near term future seem to be.




Yes it would be nice if they could do a good deal with the other online portal in Singapore



Adrian. said:


> The growth opportunities are huge here but the company is on P/E of 312!! I know the history of REA - and this is not REA - but this seems crazy. I'm not sure weather to take my initial investment out or just let the whole thing run.
> 
> Who know's what the market will do in the short term but over the long term this has massive potential. This really seems like a massive opportunity but still a big risk. IPP does have competitors but I do like the way it is reasonably diversified among a few countries and Malaysia has shown that it has good potential on it's own!
> 
> ...




I reckon in the short term the share price is likely to fall. Must be heap of trailing stops ready to bail at the first hiccup. But then again I thought the same when the price was pushing through $2.00 IPP has only been cash flow positive for one quarter, they can't sell the stake in ICQ again.  The expo business may make the revenue and cost's a little lumpy as well. So in the short term I've got no idea.

It is a tough call, but that P/E is not a very useful number, it is all about how much they can grow. That revenue compounding at a fast rate could make today's price seem dirt cheap in the future.


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## piggybank (21 March 2014)

robusta said:


> I reckon in the short term the share price is likely to fall. Must be heap of trailing stops ready to bail at the first hiccup. But then again I thought the same when the price was pushing through $2.00 IPP has only been cash flow positive for one quarter, they can't sell the stake in ICQ again. The expo business may make the revenue and cost's a little lumpy as well. So in the short term I've got no idea. It is a tough call, but that P/E is not a very useful number, it is all about how much they can grow. That revenue compounding at a fast rate could make today's price seem dirt cheap in the future.




Hi robusta,

Since your last post the stock has only continued to power on up with todays close being $3.93 (compared to $2.94 - 23/02/14). Was that prognosis based on T/A or Fundamental analysis? I see the latest P/E for it is around the 420 mark they must be expecting a massive amount of growth in the the near term!!

Cheers PB

​


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## robusta (23 March 2014)

piggybank said:


> Hi robusta,
> 
> Since your last post the stock has only continued to power on up with todays close being $3.93 (compared to $2.94 - 23/02/14). Was that prognosis based on T/A or Fundamental analysis? I see the latest P/E for it is around the 420 mark they must be expecting a massive amount of growth in the the near term!!
> 
> ...




Hi Piggybank

Guess that just proves I'm no good at predicting short term share movements. Not sure how to classify my analysis my main thoughts are nothing can go up in price like IPP has forever. Sooner or later there will be some sort of correction. You know the sort of thing, revenue grows at only 30% when the market is expecting 40%, heaps of stop losses are hit...

On a personal note IPP has grown to a touch north of 26% of my portfolio. Options being considered are taking some profits (probably somewhere around my initial investment) either through a normal sell order or maybe a trailing stop.


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## robusta (25 March 2014)

Ahhh I feel better now, down over 8% today on top of yesterday's fall. It's sort of like you know you are going to get the cane but don't know when....


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## skc (28 March 2014)

robusta said:


> Ahhh I feel better now, down over 8% today on top of yesterday's fall. It's sort of like you know you are going to get the cane but don't know when....




IPP has come back a fair bit this week... from an all time high of $4 down to now ~$3. To put it in perspective though, that's only the price it traded back on 17 March. So it's moving very much at a speed that it usually does.

There's a little bit of mini tech bust going around the work at the moment. King Digital (With their one-hit wonder Candy Crush) absolutely sucked on debut while Facebook has came off a fair bit. Closer to home you will find darlings like XRO coming off recent high as well.


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## robusta (17 July 2014)

Cash flow out today and IPP are back in the positive for the quarter.

http://www.asx.com.au/asxpdf/20140717/pdf/42qw3gfsh7q36x.pdf


The market wasn't impressed but 26% growth compared to pcp was enough to keep me happy.

http://www.asx.com.au/asxpdf/20140717/pdf/42qw3ph0kgk3y0.pdf


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## robusta (28 July 2014)

Was hoping this would happen REA have bought SeLogers 17.22% stake in IPP

http://www.asx.com.au/asxpdf/20140728/pdf/42r1nkgtbyjtcd.pdf

Now a all script takeover at $5.00+ would really make me happy.


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## robusta (7 August 2014)

Nothing unusual with the half year results out today, revenue up 44%, growth in margin from Malaysia, Hong Kong growth 47% and finally reaching profit. Share price down 2.79%

Not sure how to read this in the media release.




> Subsequent to 30 June 2014, REA Group Limited (ASX: REA) announced the purchase of a 17.22%
> interest in the Group for total cash consideration of $106.3m. iProperty Group looks forward to the
> value that REA will be able to provide to the Company as the business work to find ways to come
> closer together.




REA have a website in Hong Kong, I wonder if they are going to work together in that market or just take over IPP.


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## robusta (29 October 2014)

IPP down over 15% today.
http://www.asx.com.au/asxpdf/20141029/pdf/42t8hkfy3pvdq6.pdf
http://www.asx.com.au/asxpdf/20141029/pdf/42t8kp3xnht844.pdf

Maybe I'm looking with rose colored glasses but I don't think it was that bad. Sort of difficult to watch with what was until recently my largest holding in super and personal portfolios.


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## skc (29 October 2014)

It wasn't a particularly strong quarter from the operating cash flow perspective. Receipts of $5.104m was 15% lower than the Jun 14 quarter, while also -13% lower than the PcP. 

I spent a bit of time looking at the historical growth of REA compared to IPP. These two charts are pretty illustrative.

First chart is pretty self explanatory. Starting off the same point @ ~$1.5m cash receipts per quarter, REA's growth was relentless, while IPP's qtrly receipts have lagged in terms of growth, and actually showing some stagnation in the last 4-5 periods.




Second chart is a quick valuation metric... a simple market cap (at the end of the quarter concerned) divided by quarterly receipts. So a value of 20 means the company is worth 20x quarterly cash receipt (NOT net cash flow, just the top line receipt). REA's history showed that, even with very substantial and sustained growth, it's valuation never reached the height of IPP, which currently trades at ~100x. 



So the problems with IPP is that... growth hasn't been as good, but it's valuation is sky high.

I am not saying that IPP won't be a long term success story, but it may be worth digging a bit deeper on whether there are something fundamentally different in terms of IPP's market or operations such that it hasn't enjoy the success of REA over the same timeframe.

It's reassuring that REA sees something in it... but REA also acquired a whole heap of other realestate sites along the way that never amounted to much. 

Anyhow, I guess IPP could easily trade anywhere between 20-100 qtrly cash receipts... which means plenty of large swings.


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## Huskar (3 November 2015)

Looks like REA thought IPP has something in it after all. Takeover offer at $4.
I suppose IPP represents potential growth areas that REA may feel it doesn't have in Australia any longer. 
But the Asian markets are very different real estate markets to OZ. For example in Hong Kong, all the information is with the agents - when you want to buy a property in Hong Kong (like in the USA) you go to an agent first rather than doing all the research yourself online etc. So less capacity for network effects to build as has happened in Australia (REA/Domain) and UK (Rightmove/Zoopla). 
This also a reason Trulia/Zillow struggles in the US - agents act for the buyer and for the seller which demands quite different business propositions for online real estate portals.


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## System (25 February 2016)

On February 17th, 2015, iProperty Group Limited (IPP) was removed from the ASX's official list in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement by which Austin Bidco Pty Ltd, a wholly-owned subsidiary of REA Group Limited, acquired all of the Company's issued capital.


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