Q: I'm down 60% on this stock but only have a small position. Would you consider it a hold or sell?
5i Research Answer:
We think REAL is a hold but we do understand the frustration around the name. The housing market continues to struggle which is hurting REAL. It previously had good momentum but this has reversed in recent months and the stock is up just 5% year-to-date. Growth has returned positive in recent quarters and the balance sheet is still net cash positive. We think there is recovery potential in a housing upcycle so we think it is a hold, but this may take time.