{"id":53260,"date":"2014-06-25T02:41:41","date_gmt":"2014-06-25T06:41:41","guid":{"rendered":"http:\/\/countingpips.com\/?p=53260"},"modified":"2014-06-25T02:41:41","modified_gmt":"2014-06-25T06:41:41","slug":"why-the-rea-group-ltd-share-price-retreated-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/why-the-rea-group-ltd-share-price-retreated-today\/","title":{"rendered":"Why the REA Group Ltd Share Price Retreated Today"},"content":{"rendered":"
June 25, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

What happened to the REA Group Share Price?<\/h2>\n

\nShares in the owner of property advertiser realestate.com.au REA Group Ltd [ASX:REA]<\/b> sagged by more than 1.5% today, with the selloff more pronounced than the risk-off mood of the broader market. REA Group has now tumbled by more than 18% since its shares hit an all-time high in early March.\n<\/p>\n

Why did this happen to the REA Group Share Price?<\/h2>\n

\nThis morning a story emerged that Melbourne\u2019s real estate agents are pushing back against successive price increases in REA\u2019s ad costs.<\/p>\n

300 agencies have appointed a third-party advocate to bargain collectively for fairer ad prices. These agencies spend more than $100 million per year on digital ads with REA.<\/p>\n

Anton Staindl, spokesman for the negotiating venture, is \u2018very confident that combined, the agents pack a far more powerful punch than they do as individuals.\u2019<\/i><\/p>\n

The potential for this coordinated action to spread beyond Melbourne has spooked investors, who have marked down REA shares<\/strong> today.\n<\/p>

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What now for REA Group Ltd?<\/h2>\n

\nREA Group has been a sensational growth story for several years. But it has well and truly become a blue-chip large cap company. It\u2019s at a point where continued outperformance becomes more and more difficult.<\/p>\n

As long as realestate.com.au remains the market leader, agents will want to advertise their real estate on the site. But today\u2019s news calls into question whether a sky-high valuation is still appropriate for this stock.<\/p>\n

Investors looking for undervalued growth stories should look elsewhere.\n<\/p>\n

Tim Dohrmann+<\/a>
\nSmall-Cap Analyst, Australian Small-Cap Investigator<\/em><\/strong><\/p>\n

Join Money Morning on Google+ <\/u><\/a><\/strong><\/p>\n

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\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What happened to the REA Group Share Price? Shares in the owner of property advertiser realestate.com.au REA Group Ltd [ASX:REA] sagged by more than 1.5% today, with the selloff more pronounced than the risk-off mood of the broader market. REA Group has now tumbled by more than 18% since its shares hit an […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53260","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=53260"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53260\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=53260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=53260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=53260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}