the business of residential real estate is sales turnover pure and simple - it doesnt matter what a house sells for, a couple of 100k each way only changes the agents fee minimally on large sales. Sales volume is the only measure of turnover.
The reason the market will crucify MGE is that it is a flawed business model for a public listed company - watch it slide, I am pretty sure there wont be any miracle turnaround
It might be a sustainable business at a much lower valuation than the IPO but it will be a flat business, with minimal growth opportunity, there is simply to much competiton and no "point of difference" to any other residential agent.
I reckon it will progressively fall to around 30 - 40cents a share or thereabout is its true vlause and it will then bounce around there - I cant see it ever hitting north of 50 cents
MEA Price at posting:
$1.30 Sentiment: Sell Disclosure: Not Held
