07/31/06 10:05 am EDT... S&P DOWNGRADES OPINION ON SHARES OF HOUSEVALUES INC. TO SELL FROM HOLD (SOLD 5.35**): SOLD, which operates a real estate oriented network of lead-generation websites, posts Q2 EPS of $0.07 vs. $0.14, meeting our $0.07 estimate. Although revenues rose 25% year-over-year, quarter-over-quarter revenue dropped about 4%, highlighting our concern that higher interest rates are leading to lower sales to mortgage providers and real estate agents.We are lowering our '06 EPS estimate to $0.21 from $0.28, and '07's to $0.42 from $0.46. Our 12-month target price falls to $5 from $7, driven by our P/E analysis and our more bearish outlook. / R.McMillan
I love the way these guys come up with these recommendations after the fact.
I listened to the conference call and if you add everything up including what they said and did not say... I think the subscriber numbers are going to plummet next qtr. About 2 months before the latest report they were selling a "no long term contract" plan... but the fine print said "no long term contract until fall 2006" or something to that effect. This I'm sure was an attempt to boost subscriber #'s for last qtr.
If that happens then HV will most likely have losing qtrs. for a while.. and they've burned most of the agents that they want to pay their bills.