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...

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