Should Investors Jump Into This Hot IPO?

Shares of RE/MAX (NYSE: RMAX  ) are up more than 20% on the day of its IPO as the rest of the market sags. Motley Fool Supernova Analyst Matthew Argersinger isn't surprised by RE/MAX's timing, though -- he thinks this is the right time for RE/MAX to IPO considering the success of its competitors, including Trulia and Zillow, which have had great runs since their IPOs. Matt thinks that the strength of residential real estate combined with low interest rates has made this a strong market for RE/MAX, but he worries about the market's future.

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!



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  • Report this Comment On October 02, 2013, at 11:08 PM, techy46 wrote:

    I'd wait and see if the Wall Street smarties figure out that RMAX is completely different from Realogy. RMAX is based on the 100% real estate maximum concept and receives none of the real estate commissions directly from the agent or brokers. RMAX generates all of it's revenues from a pyramid of fees from regions, offices and agents that can crash like they did from 2007-2012 when RMAX's agent count crashed. A trader could still make some profits on RMAX if it is perceived that they will benefit greatly from a real estate surge.

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11/26/2014 4:02 PM
RMAX $33.57 Up +0.47 +1.42%
RE/MAX HOLDINGS CAPS Rating: ****

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