John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Tree.com: A Classic Case Of Growth At A Reasonable Price

Tree.com (NASDAQ:TREE) trades at a low valuation given its high growth prospects, strong balance sheet and network effect from leading market position. The closing of its real-estate brokerage business and sale of loans business resulted in significant risk reduction and increased cash position. The expansion over the past several years into non-mortgage businesses diversified its revenue stream and reduced dependence on the housing market

Company overview

TREE operates consumer financial websites providing consumers the ability to comparison shop for loans, home services, education, auto and other services from multiple businesses and professionals who compete for their business. TREE generates revenue through matching fees paid by lenders, banks, insurance companies, professionals among others. LendingTree was acquired by InterActiveCorp in...

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