- Denver-based RE/MAX started trading Wednesday.
- It went public at $22, higher than expected.
- Closed on Thursday above $30
The trend continues.
Denver-based RE/MAX has been trading on the New York Stock Exchange for two days and both days it has been the second biggest percentage gainer on the NYSE.
It went public at $22, higher than the expected $19 to $21 per share. RE/MAX issued 10 million shares, raising $220 million.
On Wednesday, it closed at $27, a 22.7 percent first-day gain.
Today, it gained another $3.21, for an 11.89 percent jump, on a day that the S&P 500 and the Down Jones Industrial Average each fell 0.9 percent.
Since the franchise real estate company started trading, it has gained 37.3 percent. Some 2.45 million shares traded today. It traded as high as $31.08 today.
Not everyone is a fan of the stock, which trades under the symbol RMAX.
CNBC commentator Jim Cramer called it a “sell.”
Given the state of the economy, a falling equities market, and a potential debt default that could be a disaster for the real estate market, Cramer was baffled why the IPO of RE/MAX went so well.
Cramer said he would prefer to avoid investing in a newly publicly traded company at this time, or in the real estate sector. RE/MAX, of course, is both. Cramer said he feels he is one of the few who is properly factoring in the potential downside to the shares of RE/MAX.
RE/MAX was founded in Denver in 1973 by Dave and Gail Liniger. They remain the largest shareholders, owning 61 percent.
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