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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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.
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..
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
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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.
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