4-Star Stocks Poised to Pop: LoopNet

Recs

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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, LoopNet (Nasdaq: LOOP), which operates an online marketplace for commercial real estate, has earned a respected four-star ranking.

With that in mind, let's take a closer look at LoopNet's business, and see what CAPS investors are saying about the stock right now.

LoopNet facts

Headquarters (founded)

San Francisco, Calif. (1997)

Market Cap

$294.2 million

Industry

Internet software and services

TTM Revenue

$86.1 million

Management

Chairman/CEO Richard Boyle, Jr.
President/COO Thomas Byrne

Compound Annual Net Income Growth (over last five years)

60.7%

Competitors

Yahoo! (Nasdaq: YHOO)
Google (Nasdaq: GOOG)
CoStar Group (Nasdaq: CSGP)

CAPS members bullish on LOOP also bullish on

Apple (Nasdaq: AAPL)

CAPS members bearish on LOOP also bearish on

Citigroup (NYSE: C)
General Motors (NYSE: GM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 1,920 of the 1,984 members who have rated LoopNet -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Star MJKpayday, who is ranked in the top 5% of our community, and AtlasTheDog.

In October, MJKpayday helped keep our community in the loop:

LoopNet is most likely stop #1 for anyone interested in buying commercial property or looking to buy a small business. I have been interested in both, but never found what I was looking for. With my hours of first hand experience with the web site I can say easily it's the best. LoopNet also has that nifty 'everyone's doing it and everyone's doing it here so I'm going to do it here too' social inertia that brings much added value.

In a direct reply from Monday, AtlasTheDog cites some recent traffic stats to back up that bull case:

ComScore Media Metrix reports [LoopNet] had 992,000 unique monthly U.S. visitors during 3-months of 1Q09, which is 11% vs. monthly average for all 12 months for CY2008. Applying the same comScore to [CoStar], it says [CoStar] had 130,000 ... unique monthly visitors during 1Q09.

[LoopNet] also reports results from Google Analytics (which measures web site traffic different that ComScore). In that case, for 3-months of 1Q09 LOOP had 5.4 million unique visitors, which is 9% vs. average per quarter for all 4 quarters of CY2008.

What do you think about LoopNet, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. LoopNet is a Motley Fool Hidden Gems and Rule Breakers recommendation. Google is also a Rule Breakers pick. Apple is a Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 05, 2009, at 1:47 PM, MoolaMonster wrote:

    I disagree. LoopNet is not "Poised to Pop". LoopNet is Poised to Drop! LoopNet's Caps rating at 4 out of 5 is way overvalued.

    Revenue was down 5% in Q1 2009 from Q4 2008. Q1's EBITDA Margin (including litigation and stock comp) was a paltry 26.5% (down from 35.2% in Q3 and Q4 of 2008)! GAAP EPS guidance for Q2 (you need to digg it out of their non-GAAP EPS guidance) is down to only $0.03-0.04 a share, after reporting $0.08 a share in Q1. Not-to-mention executive stock compensation continues to grow exponentially! Management sucks money out of the company like they are doing a fabulous job creating shareholder wealth. I wouldn't stick with a board and management team who killed $14 million in shareholder value with $55 million in stock repurchases at $11 a share (today the stock is at $8.20), and then diluted shareholders with a $50 million convertible preferred deal a few months later!

    Zack's Investment Research agrees that LoopNet is a loser! See their article at the following link below.

    It's like Zack's read my mind (or my post). Here's my post prior to LOOP's Q1 earnings:

    "LoopNet is a loser" http://boards.fool.com/Message.asp?mid=27628454

    Here's the Zack's article:

    Five Reasons to Sell LoopNet

    Zacks Investment Research

    Sean P. Smith

    On Thursday April 30, 2009, 10:39 am EDT

    http://www.zacks.com/stock/news/19690/Five+Reasons+to+Sell+L...

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