The Real Brokerage And RE/MAX Holdings Move In Together, Attractive Valuations
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryThe Real Brokerage will acquire RE/MAX Holdings in a cash and stock deal, triggering sharp price moves in both stocks.REAX has outperformed a weak housing market with rapid revenue and agent growth, while RMAX has struggled, especially in North America.The combined company targets $30 million in annual cost synergies and a more diversified, stable revenue mix, but REAX's growth rate may slow.I rate both REAX and RMAX a soft ‘buy’ due to attractive valuations, despite increased leverage and integration risks.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »Andy Andrews/DigitalVision via Getty Images April 27th was a fascinating day for investors in the real estate market. Shares of The Real Brokerage (REAX) ended up plummeting 27.1% in early afternoon trading after management announced that theThis article was written byDaniel Jones37.11K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.