This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer: 'Realogy Is For Real'

Stocks in this article: RLGY

NEW YORK ( TheStreet --

Debra Borchardt:

Realogy (RLGY) is going to be reporting their earnings on May 1, but ahead of that we're going to talk about this hot real estate stock. Jim, we all know that the real estate market has been definitely on a path to recovery.

Jim Cramer:


Debra Borchardt:

It seems to really be heating up, just lately. This company, also they just redeemed many of their notes with their IPO proceeds.

Jim Cramer:


Debra Borchardt:

Company went public, now they've been up 33% since they went public.

Jim Cramer:

Right. This is a classic case of a deleverage situation. They do issue stock, they pay down debt, the earnings per share goes up. That's kind of what Ben Bernanke wanted when he decided to lower rates, you can refinance everything. The important thing is that Mr. Smith, who's the CEO, said there's a housing shortage. It's not a developing housing shortage, there's just a housing shortage and that's how prices are going up 20-30%.

We were discussing before we did the video that we both know people...where there's multiple bidders now for most, because there's not been any homes...if you look at the number of homes that were created and you look at the number of households that are created and you look at the number of homes that are destroyed by a fire or flood every single year. You realize that we're just not putting up anywhere near the homes...and it's been seven years. Seven years of a downturn is a very long time. When you look at Realogy's numbers, you recognize that this is still trough. As amazing as that sounds, it is still trough, particularly for this company, which had so much debt on.

Debra Borchardt:

Now, you and I were just talking before this taping about how, like we said, neighbors that we know that have put their house up for sale - had multiple bidders. The one I knew, every bidder had a 20 or 30% down payment they were willing to do. So, it sounded like there was a lot of pent up demand, people were saving their money and waiting.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs