NEW YORK (TheStreet) -- Shares of SouFun (SFUN) were falling 5% to $8 Tuesday after the Chinese online real estate portal announced the termination of its strategic cooperation agreement with Century 21 China (CTC) .
The company said the strategic cooperation agreement was terminated in accordance with their terms. Under the agreement Century 21 China had to obtain all third party consent within 60 days of signing the agreement, which it failed to do in time.
SouFun and Century 21 China first signed the strategic cooperation agreement on Oct. 7, 2014.
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Under the agreement the two companies would have formed "a mutually preferred strategic partnership across their business lines, including advertising, e-commerce, listings services, internet and real estate financing, and secondary and primary brokerage service." Century 21 China would have also issues new shares of SouFun and issue a convertible bond to the online real estate company.
TheStreet Ratings team rates SOUFUN HLDGS LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOUFUN HLDGS LTD (SFUN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."