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Stockchase Opinions

Peter ImhofReal Matters Inc.REAL.TOBUY ON WEAKNESSJan 31, 2020

They went public about 2 years ago and he sold it after the IPO after being a private owner previously. The valuation is not cheap, but the refinancing market in the US is going strong. They reported recently and beat expectations. He would not be a buyer at these valuations.
$13.93

Stock price when the opinion was issued

$5.28

As of Jun 19, 2026. Market Open.

Financial Services
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They don’t have the history he is looking for. He has come close to buying them before. Size the position accordingly but it looks promising.
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COMMENT
Not an expert on this, but he worries about their exposure to real estate, given how interest rates have crumbled. REAL has been doing well during Covid, though. He wants to see how REAL does in a real estate bear market to see how their business model holds up. This may be fine if you have a long-term horizon, but he wants to see more of a history before stepping in.
COMMENT
Mortgage processing type business. The gap between Main Street and Wall Street has been bridged by monetary policy. Fiscal downside is much larger in the US than other places that are more social democracies. Recovery will be tied to vaccine roll out and near term support from governments. You must weigh these into your investment choices.
WATCH
He got stopped out on this recently as it started to fall. He's watching it. It should have a tailwind going further from the refinancing of mortgages given very low interest rates. Their technology allows this to be done efficiently. He expects the US housing market to remain strong which benefit REAL. He will re-buy when this bottoms.
COMMENT
Target of $26.84. Insurance appraisers and real estate agents use their software for residential properties. Canadian, but over 90% of revenues are from US. Expensive, but 21% ROE. He owns other large and mid-caps in the industry.
BUY ON WEAKNESS

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COMMENT
It was beaten up for many years. With all the refinancing given rock-bottom interest rates, volume has picked up, so REAL benefit (providing software to the real estate, mortgage financing sector). The easy money has been made. If you buy this, hold for a long time.
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The Uber of real estate transactions. They connect lenders, lawyers and realtors together. The more value you can bring to these groups the more they can charge. Lots of runway for revenues going forward. Yield 0% (Analysts’ price target is $16.00)

COMMENT

This does mortgage appraisal, with 90% of revenues coming from the US. They’ve done a great job in terms of signing up a lot of the larger US banks. They just went public this month. He really likes the story. If you have a long-term perspective, he thinks the company is going to do extremely well. You just have to be patient in terms of them getting market share.