Q: REAX Your analysis please, thanks.
5i Research Answer:
REAX The Real Brokerage Inc. is quite small at $529M market cap, but obviously bigger after its 130% one year gain. It has $38M cash and revenue is ramping up nicely. It is still losing money but cash flow has turned positive. It helps real estate agents through technology, and is of course thusly tied to real estate markets. Recent commission changes to the industry may be a headwind, but then again with changes more brokers may need REAX's services. Insiders own 19%. It is cheap on a price/sales basis, but we would of course like to see profits soon. We think it is interesting but needs to be considered very high risk with recent developments and exposure to a single sector.