REA Group Ltd (ASX:REA) as I've mentioned before, is priced for perfection in my view. Thinking about a catalyst for this stock is difficult. REA virtually uphold a monopoly in the Australian housing market, which is good news for people that bought in many years ago let alone one year ago. But if you're like me and didn't then I'm also on the lookout as to what might drive earnings further. Due to their monopoly power, growth in the Australian market is slim. Obtaining more market share is practically out of the question. I believe they can extract more revenues from existing customers by changing their fee structure. This, in conjunction with their expansion overseas is interesting. But, something that i learned from Phil Fisher's book Common Stocks and Uncommon Profits is "what are they doing that competitors aren't doing yet?". If they change their fee structure, they may lose customers to rival Domain. As they expand overseas their competitive advantage may not exist in other markets which may be more developed.
REA is on my potential list of investments but i don't know enough about the company to buy into it yet.
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