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Thanks. I personally wouldn't recommend ZG here unless you have a very long term time horizon in mind.. it will probably correct down to a technical support level.. say 45 or so. If I was dealing with big funds and was a swing trader I would have sold yesterday, but I'm not. I'm more of a long term investor in growth oriented companies.
Completely agree. I was going to invest in ZG in Jan/Feb 2016. While it wasn't thoroughly researched, I figured that it was the one of the more popular RE sites and that real estate would get hot in the coming years.....alas, I didn't pull the trigger and then felt it was too late to get in the following year.
StockWiz living up to his name. I'm just happy to be positive right now.
They'll have a bad earnings report and it will be trading at $15 by the end of the year. I wish they would hire me. I have a few ideas that would boost revenues to their site and increase it's functionality. I believe in the company. Online real estate is a no brainer. I'm constantly using the site to look and what homes in other areas of the country are selling for, but there's definite room for improvement. I believe they should strive to team with local realtors, and not compete with them. Access to the MLS and quick listings is important, as is providing the property disclosures in the listings, and better maps which are more updated (using openstreet instead of bing) The local MLS is far more accurate, I just use zillow as a starting point right now.
The only other realtor that I think has potential is EXP realty, which has a neat little online 3D world their employees can use. I've wandered around in it from time to time to see what they're up too. lol Real estate in the cloud? What could be better? :P If they can manage to take off without going bankrupt that stock is an easy 10 bagger if not 50 bagger given enough time (EXPI) .. right now they're adding realtors FAST but it remains to be seen if they'll make it past the small company stage and get big or not.. they've been using stock options to pay some of their employees but the dilution isn't bad at all as of yet, so I hold a small position. If you're interested in their little online world... here it is... it's pretty small and crude, but realtors have their own "virtual" offices, lol. Most of their business is done outside this little world at branch offices, mind you.
The higher reward companies are always more risky. Nothing new. It's dropped under 3, I might double up my position after I dig through their latest quarterly earnings statement. I've been preoccupied with the whole crypto currency thing lately and the stocks have taken a backseat.
my reit took a bad tumble this week when it bought FPO, had to sell a lot of shares to raise money
but it's probably good in the long term, now I have to see how long it takes to recover
I feel your pain — really! Unfortunately, I hold about that much GOV in the real world. Worse, that recovery may be a long road to haul.
My understanding of the problem with GOV is that management interests are misaligned with shareholder interests. Management compensation is based upon Assets Under Management instead of upon metrics that are more shareholder friendly. Until now that was fine — as long as RMR acted responsibly toward shareholders.
But now, RMR appears to be a self-serving management firm that will destroy shareholder value for their own gain! The secondary offering to raise cash for the FPO acquisition sliced more than one-sixth off the price off the stock in one day (plus two minutes) of trading.
As of Monday, the stock traded near $22½/share. Then midweek the company announced a secondary offering at only $18½? Are the frankly kidding us!!! Horrifically, NO they were not! Bad acquisition, bad financing, bad management! And that's why the stock price tanked on the news.
The result: Shareholders lost a boatload of value and management has shredded shareholder confidence!
What to do? Unless we're billionaire activist investors, we're probably SOL. But what little we can do includes...
1) Avoid REITs managed by RMR. These include Government Properties Income Trust (GOV), Select Income REIT (SIR), Senior Housing Properties (SNH), and Hospitality Properties Trust (HPT).
2) People forget! When GOV sees some recovery, and it will, I'll sell and replace it with a similar REIT that's more shareholder friendly; Easterly Government Properties (DEA) or something like it.
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it's based in athens, just following the austerity plan there
I wish they would hire me. I have a few ideas that would boost revenues to their site and increase it's functionality. I believe in the company. Online real estate is a no brainer. I'm constantly using the site to look and what homes in other areas of the country are selling for, but there's definite room for improvement. I believe they should strive to team with local realtors, and not compete with them. Access to the MLS and quick listings is important, as is providing the property disclosures in the listings, and better maps which are more updated (using openstreet instead of bing) The local MLS is far more accurate, I just use zillow as a starting point right now.
GOV: the management IS the problem
Bad acquisition, bad financing, bad management! And that's why the stock price tanked on the news.
