Mike Arnold
Long only, small-cap, tech, growth at reasonable price

ZipRealty Shares Offer Investors Another Opportunity

Executive Summary

  • Transforming SaaS business model is not fully appreciated by investors.
  • Recent price dislocation caused by overstated concerns of share dilution via potential ZipRealty equity raise rather than any fundamental change in underlying value.
  • Large shareholder, venture capital firm Benchmark Capital, indicates desire to sell up to 4.2 million shares, causing temporary supply/demand concerns.


ZipRealty (NASDAQ:ZIPR) is comprised of two businesses: (1) owned/operated brokerages in 19 markets across the United States comprised of nearly 1,700 agents and (2) Powered by Zip ("PbZ"), a software-as-a-service ("SaaS") customer relationship management solution.

ZipRealty shares experienced a severe price dislocation in January when the company reported that it intended to file a shelf registration to issue up to $50...

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