Replies to post #109416 on Savvy Trades and Investments

[SSKILLZ1]

RMAX

I initiated a position today at $8.23. Here is what I like.

Trough or close to trough conditions: I believe right now RMAX results of reflecting close to if not allready there trough like condition for existing homes sales. So I believe this will be a plus for RMAX.

Valuation: Even at trough condition guidance should get us to about $1.30 Non Gaap again this year and that might be conservative if the market picks up, and of course I expect better number in FY 25. But even as is buying a company Like this at about 6 times trough earnings seems waaaaaaaaaaaaaaay too cheap.

Oversold and At 52 Week Lows: Stock is trading at a RSI of 28, and is at 52 week Lows. So your not buy with much priced in at this point, unlike most of the market.

Conclusion: I like RMAX as I think it is signifcantly undervalued. I also think once Sales of existing houses start to rebound the PE will be a much higher multiple. Wouldn't surpise if this stock could come close to doubling in the next 12-18 months. Time will tell. All is just my opinion, and I could always be wrong though.