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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (104235)	2/9/2008 3:41:03 PM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

Barrons on RATE - March 26 2007 ______________________________ Slow-Motion Train Wreck Picks Up Speed Interview With Sy Jacobs, Founder and Investment Manager, Jacobs Asset Management By SANDRA WARD ............. Barrons: Where else do you see opportunities from the fallout in subprime? Jacob: We are still short Bankrate [RATE]. We were painfully early on Bankrate, judging from the fact the stock went from 20 at the time we spoke two years ago to 39 now. But we actually think our original thesis is unfolding now and see Bankrate as a play on mortgage velocity, which is coming down. Organic growth has all but stopped, as you can see from the deceleration of their page-view growth, but they have made some acquisitions. They've surprised on the upside with earnings expectations because they raised prices aggressively for advertising on their site with Internet banner ads and click-throughs. We think the price increases on ad rates are unsustainable. Their customers are mortgage brokers and mortgage bankers. These mortgage bankers and brokers will go out of business in droves in 2007. You could see big revenue disappointments at Bankrate, which won't go over well with the stock trading at 30 times 2007 estimates.