After doing some research I think RNT has a solid niche and is...

After doing some research I think RNT has a solid niche and is selling for a reasonable price.  Could fizzle nowhere but I think with increased visibility this could easily go to $100m valuation overnight.  I am happy to have a small punt on that basis.


My thoughts below:

Pros:
Targeting niche market - self-managed landlords
Building scale fast by starting with free offer
Expect to see more self-managed landlords as boomer landlords retire and want something to do
Website works well and has decent depth of listing
Own a good domain name
Strong growth in audience
Extra upside with things like utility connections, tenants insurance, etc as well as advertising
Invested $10M since 2007 getting things up and running - valued at $16m today
Bond financing is a good hook for renters to start using site, and likely to spread via word of mouth
Possible acquisition by REA, Domain, or another media/classifieds company
Execs are buying shares
Site growing faster than anticipated
Good amount of cash at bank
Main site infrastructure already built


Cons:
Can be challenging to convert free users into paid ones
Lack of current earnings
Valuation of $16M - Can REA or a tangential competitor build one for that?  Suggest not.
Rent.asia - total red herring.  Do people in other countries call it rent? .asia is not very local
Unlikely to grow to same size as REA Group


Interview http://www.theaustralian.com.au/bus...au-mark-woschnak/story-fn9656lz-1227413360962