Rocktex

ZipRealty: Challenging Times, But

How come, in the article, there is nothing mentioning about "net profit," PE or EPS? Let alone balance sheet.

I am not challenging your position in favor of Ziprealty. But your observation seems not so accurate. By comparison, I will say you are using so-called "gross multifier," in real estate jargon, to evaluate an income property purchase. I believe it would be much safer to use “net multifier”

Agent growth means growth of quantity or market share. It is good to be able to cover more territories. It maybe able to have more utilization of facilities to reduce unit costs. In this perspective, it will be safe for me to say Ziprealty is in a better position than Redfi. Redfi's San Diego operation can NOT even find a local agent in San Gabriel valley, CA to process a "make an offer" submission to get more revenue. However, it keeps sending its update to a prospect as a Santa, while there is nothing for Redfi to gain in the immediate future, except a good public image.

Ziprealty has better coverage, but that does not guarantee better quality service will be given. Certainly, I have no idea to know the connection between its growth and profit growth. Generally both move to the same direction, but it is not always the case. Starbuck gave us a good example showing that both can go different directions in its Q32007.

I won't buy Zip realty if I were Warren Buffet.