I can see this going back down to 15c. All RNT can do at the moment is talk about how many visitors it can get to its site. Even in the next quarter the outlook doesn't mention anything about trying to monetise. At what point will it be "ready to fully commercialise the platform"?
Balance sheet will be deeper in the red by the end of the year with increased expenditure on marketing campaigns, etc. It made $162k in the most recent quarter. Running the business cost well over $1m.
From a product perspective, landlords are prepared to pay the 10% fee that agents charge for running their rental. 10% is nothing compared to the cost of running it yourself in terms of time and money. Even if they do make the process easier for the landlord, there is still more work involved by the landlord than going with an agent. The work involved is still worth more than the 10% saving. I know landlords that have tried running rentals themselves and have gone to agents.
If there was a market for such a product, surely REA and co. would have released a product to cater for this audience? It's not a patented idea.
RNT Price at posting:
24.0¢ Sentiment: None Disclosure: Not Held
