Research Intensive Investing

LoopNet Management Can Handle Tough Times

This company has a lot of headwinds. CoStar is coming out with their own product to compete with Loopnet’s which could impact business. Also, page views are clearly trending downwards, and monthly churn rates are phenomenally high. Most of its advertising base are smaller speculators or brokers who may not be able to weather this downturn. The stock has already been hit hard, but I do think it’s got some more room to fall as news flow should continue to be negative for at least the next year. I doubt they will be able to hit their revenue estimates. For disclosures sake I’ve been short LOOP for some time, though I’ve recently reduced my position some on the latest downtick.

Eric
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