Hi Valinvestor, Expensive when looked on PE basis. But since this is a growth company , the market is likely to attribute a higher PE. PEG is probably a better way to value this. An analogy is GRB, PE of 90 odd.......but the potential is huge. The consumer online growth is 300pcnt and all this is from a low base. Therefore lots of room to move. Interests rates will be coming down in the future and money will flow into housing soon so I see this as benefit for OTH. The real estate solutions is a untapped market and what I like is the innovative aspect of the company. Being well versed with internet companies having built one myself and involved in development, there is huge leverage obtainable as the presence on the internet requires good SEO and non traditional methods of marketing which are not very expensive. So no high capex here once it gets going. They had a graph previously of the number of visits on their site and that rivals REA. That itself is of great value (location, location, location) The thing is this company is most likely going to be bought by another player and it is a calculated punt on innovation, growth and good operating cash flow. I wouldn't bet the house on it , but worth putting in a reasonable stake.
OTH Price at posting:
69.0¢ Sentiment: Buy Disclosure: Held
