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The Company has created an online service that enables consumers to find real estate listings and other content related to residential real estate, moving and relocation.
Move Inc., formerly Homestore, Inc., has created an Online Real Estate service that enables consumers to find real estate listings and other relevant content through websites like REALTOR.com, HomeBuilder.com, Rentnet.com, SeniorHousingNettm.com and Homestore.com, generating nearly 75% of revenues. Move-Related Services segment, managing to garner up the balance 25% revenues, provides advertising products and lead generation tools, including display, directory products, price quote tools, and content sponsorships on its websites.The US real estate market has seen the worst in 2006. However, the current slowdown could be prolonged if the interest rates and unemployment levels continue to remain at the same levels, which would hit residential property sales in the first place. Although the number of building licenses granted has increased, builders have been slashing prices and production as they are attempting to get rid of the large backlog of unsold homes. Revenues in this business are also impacted by the number of household moves each year. Due to weather and school calendars, a disproportionate percentage of moves take place in the second and third calendar quarters than in the first and fourth quarters.Looking at the trend of net loss for the past seven consecutive years, Move seems to be failing to generate satisfactory sales to compensate the operating expenses. Although the losses have reduced in the past two years, the company does not seem to be seeing the daylight in the near future. Revenues for the quarter ended September 2006 increased 10%, backed by an increase in earnings from the real estate website segment. However, operating loss still exist, reflecting no reduction in personnel costs, material and shipping costs, and higher development costs. Backed by weak fundamentals, an unfocussed approach towards reducing costs and failure to generate positive cash flows makes Move a poor investment proposition.
In March 2007, Move Inc aligned with the American Moving and Storage Association (AMSA), a non-profit trade association with more than 3,500 professional mover members, to launch a new web application tool that directs consumers seeking professional mover services to AMSA's extensive professional mover members. The exclusive joint marketing initiative will feature the industry expertise of AMSA to Move's wide array of products and services focused on helping consumers find, move into and enjoy their new home.Move.com has launched a series of ‘How-to’ Guides to help consumers navigate the often daunting waters of first time home buying, remodeling and more. These new tools harness the breadth and depth of content provided on Move.com, covering every aspect of the moving process. Move Inc posted soft results for first quarter of 2007. Revenues grew marginally by 3%, whereas the company posted net profit of $ 163000 as compared to a loss of $2.3 million. Move Inc posted soft results for first quarter of 2007. Revenues grew marginally by 3%, whereas the company posted net profit of $ 163000 as compared to a loss of $2.3 million.Also, the awaited rollout of additional products and services to enhance the non-performing offerings and drive the next leg of growth, have been unfortunately slow to roll-out and suffered from execution and customer reception issues. The new initiative remains in stealth mode and is anticipated to be launched in August 2007. Details are likely to remain scarce until then. In absence of any major trigger, the shares of Move Inc are likely to under-perform among its peers.
too bad the NAR hasn't investigated the lying to realtors by the inside ae's who make 30k to 40k per month on the backs of hard working and long standing realtors...i know from experience
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