Mike Arnold
Long only, small-cap, tech, growth at reasonable price

RE/MAX Continues To Execute, Shares Look Moderately Undervalued

It's a seller's market with respect to residential home sales these days. In my local market, inventory on hand is at extremely low levels (less than 2 months inventory, 6 months is considered equilibrium), thereby providing support to the upward momentum in home prices.

On the other hand, it's a buyer's market with respect to shares of RE/MAX Holdings (NYSE:RMAX), which sold off after reporting solid 2013 earnings and providing solid, but beatable guidance for the year ahead.

RMAX is one of the leading real estate brokerage franchises in the world. The franchise is comprised of over 93,000 agents and is doing business in 97 countries. The beauty in the RMAX franchise model is that it is capital...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details