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<<Numbers Do Not Lie>>

But statistics can be made to say whatever you want them too. They did a great job of making these statistics lie.

<<If was providing a valuable service to real estate agents, we believe it would be fair to say that their customer base would be growing like crazy.>>

I guess a 40 or 50% growth rate is not great???

<<According to the SEC filings on SOLD, their churn rate, which measures the rate at which subscribers cancel, ranges from 6 to 6.5% per month.>>

That means that 93.5 to 94% renew!!!

<<Essentially, 72% to 78% of its customer base cancels its subscription every year.>>

This is where the fallcy lies. If you have 100 realtors up for renewal each month and 94 renew and 6 don't, after 12 months you have 1,128 renewals and 72 cancellations. Guess what: The cancelation rate is 6% not 72%. What a BOGUS ANALYSIS!!!

<<If the leads Housevalues generated were valuable, there is no way 3 out of 4 subscribers would cancel.>>

Another fallacy. Based on a churn rate of 6% only 6 out of 100 are cancelling.

<<In fact, this number is so high it indicates that a substantial component of the company's total revenue is the collection of cancellation fees. (If you are an investor, this would be a good question to ask them -- they don't report it.)>>

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