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IPP - iProperty Group

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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.
 
Country Lad said:
Yep, a nice breakout from my favourite setup.

Cheers
Country Lad

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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.
 
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

 

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
 
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.
 
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.
 

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


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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