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Zillow Group, Inc. Message Board

  • ohioflake ohioflake Feb 14, 2013 12:46 PM Flag

    z vs trla

    Now that the online real-estate sector is looking robust, I'm wondering whether to hedge my Z long position by adding TRLA. Kind of thinking along the lines of the old "gorilla theory" - one of these two companies will likely eventually dominate the market. One way to ensure that you hold the right one is to hold both. I selected Z simply because of its head start. Any opinions? Serious, unbiased posts appreciated.

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    • My friend, do not purchase TRLA before the lock-up expiration date on 3/19/2013. TRLA can go up for another week to two, but eventually you're going to have millions and millions of shares that are eligible to be traded on the market and the selling pressure will take the stock down. Insiders and VC's almost always take profit, especially if the stock is higher than the IPO price. I have done quite a bit of research on the matter, and there are dozens of examples of hedge funds shorting the stock in anticipation of the lock-up period. I have seen numerous companies sell off around 25% to 45% in anticipation of the expiration. Why do you think the short interest has grown so much?

    • I am also in the same boat as you are. I have held on to Z for almost a year plus. TRLA looks interesting as well. Z seems more matured with their recent acquisitions. A side question to ask, which one is a better candidate for an acquisition? It might not be a bad idea to hedge your bets on both since they seem to follow each other.

      Sentiment: Buy

    • amigaguy Feb 14, 2013 9:11 PM Flag

      Hard to say! For the next few years at least, there is room for both companies to grow in parallel.

      Sentiment: Strong Buy

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