NEW YORK (TheStreet --
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:Right. 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: Right. 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV