You may recall that some time ago I discussed REA as the ideal housing bust short. It half played out then rallied again post-election. But some chickens are home to roost today:
The result was marred by a big write down:
But that is not the problem. This is:
A dubious outlook with EPS growth of only 6% does not justify 36x forward PE:
Not in any market.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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