30/06/2022 09:32

REA Group Ltd (REA) $110.99

Wednesday’s 3% fall by REA would make it appear likely to have been one of a number of funding vehicles used to buy into the $1.2bn carsales.com (CAR) capital raise. Unfortunately from a buyer’s perspective it’s still well above its recent low, we like this business and if it does surprise us on the downside when it reports on the 6th of August, this is one growth company MM would be happy to buy into further weakness.

Read more

16/06/2022 09:42

REA Group Ltd (REA) $96.85

REA has undoubtedly been in the wrong place at the wrong time being classified as a growth stock with exposure to the very nervous Australian property market although a 46% drop does feel fairly heavy-handed. The stocks trading on an Est P/E for 2022 of 31x and we feel its entered the accumulation zone aided by its dominant market position which yields pricing power plus following recent comments...

Read more

03/06/2022 09:37

REA Group Ltd (REA) $109.65

REA has corrected 42% from its mid-2021 high and is currently down 35% for the financial year after finding itself in two unpopular naughty corners i.e. property and high valuation growth names. This is a quality almost monopolistic style business with some useful pricing power but it currently is in the wrong place at the wrong time, the question is when has real value been restored – its still not cheap per se trading...

Read more

04/05/2022 09:30

Flagship Growth Portfolio

The MM Flagship Growth Portfolio slipped -1.1% last week while our cash position sits at 2%. The index itself closed marginally lower with our performance helped by Bank of Queensland (BOQ) +6.5%, Qantas (QAN) +4.7% and BHP Group (BHP) +4.4% but meaningful dips in ResMed (RMD) -9.5% and Goodman Group (GMG) -6.8% led to the slight underperformance.

Read more

04/05/2022 09:25

REA Group Ltd (REA) $125.14

REA or realestate.com as most people think of it has been hit with the double headwind of being associated with the struggling tech sector and Australian housing which of course most pundits are certain will crash over the coming months. However, after correcting over 32% there’s certainly a large degree of negative news already built into the stock although an estimated valuation of 40x for 2022 most definitely doesn’t place it in the cheap basket.

Read more

21/04/2022 09:12

REA Group (REA) $127.66

One of the qualities to look for in a defensive business is pricing power, and REA’s dominance in real-estate listings ensures it can raise prices regularly. When listing a house it’s almost a given that it will be posted on www.realestate.com.au in the first instance as part of a wider campaign. The stock has come under pressure as bond yields moved higher and concern around real-estate...

Read more

17/03/2022 09:15

REA Group (REA) $135.65

REA is a quality business that’s enjoyed strong pricing power over recent years but even after its 31% correction MM is nervous towards property volumes as mortgage rates rise, if people decide not to move REA makes less money. Conversely as the economy reopens post COVID more people will be looking to relocate for work as WFH becomes less prevalent hence it’s a tough balancing act to value REA through 2022.

Read more

06/10/2021 09:28

REA Group (REA) $151.81

REA is a classic growth stock which while undoubtedly a quality company can be susceptible to decent pullbacks around bond yields fears, a not uncommon characteristic of high valuation stocks. MM is a fan of the business / company but we have no interest in the shares at this stage unless they’re trading around 10% lower.

Read more

22/07/2021 09:23

REA Group (REA) $160.21

Property listing business REA has enjoyed a solid 2021 following the strategic acquisition of Mortgage Choice (MOC) plus having taken a 34% stake in mortgage software business Simpology.

Read more

14/05/2021 09:15

REA Group (REA) $148.17

REA is a quality on-line real estate business that most Australians visit on a surprisingly regular basis, especially when prices are soaring like today!

Read more