LoopNet Inc  (LOOP) Trade Now »     Rate LOOP  -  Discuss LOOP  -  Add to Watch List        

Loop has enviable position as the de facto multiple listing service (MLS) for commerical RE in the US.  They offer this service quite cheaply, much cheaper than anything CoStar is doing, and much more comprehensive.

Business looks a little shaky due to RE malaise, but the stock is now cheap for a long term grower.  The negative effect of economy is baked in.  Rent or buy/sell, the US will still need an outlet for commercial RE transactions in any market.

Two things have LOOP down...

1.  An anticipated drought in commercial real estate, using residential real estate as the proxy.

2.  Fear of a competitor's first half 2008 offering.

Addressing #1:  It makes sense to buy a great business model when it's market is having trouble.  There is no doubt that risk exists in commercial RE for the forseeable future.  However, this effect will be mitigated by LOOP's continued penetration of offline advertising.  Furthermore, LOOP is currently without a competitor of any significant magnitude.  Much like EBAY, LOOP's primary competitors a