Company Reaches Major Inflection Point; Major Upside in Offing

Investment and Company Research
Opportunity Research
COMPANY UPDATE

On the heels of major news announcements and just ahead of key inflection points in its business model, we believe that is on the cusp of generating meaningful revenue later this quarter. In our view, this low-float digital media and technology company’s shares are set to return to the $3-4 level in the near term.

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REALBIZ MEDIA GROUP, INC.

Company Reaches Major Inflection Point; Major Upside in Offing

Rob Goldman
rob@goldmanresearch.com

January 16, 2014
 

REALBIZ MEDIA GROUP, INC. (OTC:QB – RBIZ - $1.18)

Price Target: $7.00 Rating: Speculative Buy
 

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

RealBiz Media Group, Inc. is a real estate digital media and technology company whose proprietary video processing technology makes it one of the leaders in providing home video tours to the real estate industry. Its client base includes more than 100,000 real estate agents and brokers. Through its wholly owned HomeTourNetwork operation, the company provides a Television video on demand network, a growing MVA network, and an existing Virtual Tour network. The company enjoys access to the nation’s largest real estate companies with numerous approved vendors and national contracts, both key to its future development programs.

 

KEY STATISTICS

 
Price as of 1/15/14 $1.18  
52 Wk High - Low $4.65 – 0.26  
Est. Shares Outstanding 46.6M  
Market Capitalization $55M  
3 Mo Avg Vol 10,000  
Exchange: OTCQB  
 

COMPANY INFORMATION

RealBiz Media Group, Inc.
2690 Weston Road, Suite 200
Weston Florida 33331
954.888.9779
www.realbizmedia.com
investorrelations@realbizmedia.com

The Bottom Line: On the heels of major news announcements and just ahead of key inflection points in its business model, we believe that is on the cusp of generating meaningful revenue later this quarter. In our view, this low-float digital media and technology company’s shares are set to return to the $3-4 level in the near term. Here is why:

RBIZ just launched Nestbuilder.com, the first fully integrated video marketing platform that allows real estate agents full control of their out-bound marketing campaigns to online, TV and mobile channels on one platform. The site showcases over 600,000 videos and is expected to reach over one million videos by March 31, 2014. With 1.6 million in its base, RBIZ has more listings than rival Zillow (NYSE – Z).

Tens of thousands of agents will likely be fully engaged during the full-scale rollout this quarter, leading to the first meaningful quarter of revenue derived from this flagship offering. Revenue will be generated by real estate agent subscriptions, customization fees and advertising. 

The dynamic and deep features, functionality, low cost, and ease-of-use of the platform negate the need for agents to have their own website. Thus is especially the case when considering the ability of the tool to consistently generate high quality leads.

Nestbuilder.com acts as a powerful social media marketing tool that integrates with RBIZ’s 100,000 newly created agent web pages. The agent web pages will interact with mobile, video ads, the Microvideo App (MVA) platform and additional home video content to give the agent a powerful new way to engage and better serve their customers.

Early this morning, RBIZ and Builders Update today announced a partnership to exclusively provide real estate agents direct access to new homes and homes under construction by homebuilders throughout the U.S. on RealBiz Media Group's nestbuilder.com. Builders Update's database inventory, currently including over 110,000 properties, will be added onto the Nestbuilder platform which is driven by RealBiz Media's patented video stitching technology, which already includes listings from the multiple listing services. The addition of new construction homes directly from homebuilders is a great complement to the home resale listings.

Positioning

The increasing use of online video has been a game-changer with respect to consumers’ purchasing habits. In our view, this will only increase over time. The Company’s Nestbuilder.com social media destination will help drive leads and sales for agents and tighten the agent/consumer relationship.

In our view, the RBIZ platform is tailored to dramatically improve sales for real estate agents while driving major traffic and revenue to RBIZ.  In fact, we the Company’s Micro Video App geared for use on mobile devices could emerge as the most disruptive technology in the space. While it may take a few months to measure traction, web traffic, and revenue metrics, by year-end, management believes that the estimated circulation of 500,000 MVA's could reach ten million monthly impressions, led by relationships with key players such as Hunt Real Estate ERA, Century 21, and others..

CONCLUSION

RealBiz Media Group, Inc. is on the cutting edge of a fast-growing, high value digital media platform for the real estate industry. Based on recent transactions, and the valuations for peer companies such as Trulia (NYSE – TRLA) and Zillow (NYSE – Z), we believe that as RealBiz’s business scales, its market cap could be valued in the billions. TRLA and Z, which are both losing money, trade at high monthly unique visitors/ market cap multiples and RBIZ is well-positioned to join them based on its approach and new contracts.  In fact, we believe that the new initiatives could enable the Company to rival Trulia’s and Zillow’s monthly unique figures, sometime in 2014, especially considering that the Company will have a video inventory of homes that is likely unrivalled.

With only about 2 million shares in the float, this exciting company is poised to reach our $7.00 price target in short order, as it penetrates its customer base and monetizes its platform’s offerings. The picture perfect stock chart can be found below. We rate these shares Speculative Buy.

Recent Trading History For RBIZ

(Source: Stockta.com)

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Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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