CMC Markets’ Chief Market Strategist, Michael McCarthy likes REA group.
“After its half year result REA was sold down heavily. Although headline profit was down 98% due to write downs associated with its Asian businesses, underlying earnings grew by 20%. Management was very cautious and warned about political risks to housing market activity in the near term. However, in my view, this is one of Australia’s few higher growth, more mature operations, and I view any further share price weakness this week as a buying opportunity,” he says.