Ignorance hasn’t hurt Asia-focused property website iProperty Group (IPP) with the stock jumping to a record high today even as management was at a lost to explain the recent strong share price performance.
iProperty shrugged its shoulders when its 28% jump in share price over the past week attracted the attention of the ASX, which issued a speeding ticket querying management on the sharp movement.
The stock added 5.2% to $1.63 this afternoon but the outperformance is probably not driven by company specific developments but by a re-rating of the sector.
While the stock has done well, it is really just playing catch up with industry leader REA Group (the owner of realestate.com.au).
In fact, iProperty often follows REA. When internet stocks lose their flavour with investors and REA gets de-rated, small cap peers iProperty and Onthehouse Holdings (OTH) will also get pummelled. When sentiment towards REA rebounds, iProperty and Onthehouse won’t be far behind.
Onthehouse has nearly doubled in value since July this year but closed flat at 73 cents. You can read my views on iProperty here.
iProperty and Onthehouse are part of the Uncapped 100.