Log In

EXPI: Dead Company Walking? EXPI Desperately Raises Agent Comp AGAIN as Multi-Level Marketing Economics Start to Unravel

November 8th, 2024

“When someone shows you who they are, believe them the first time” - Maya Angelou   Imagine a company that SLASHED prices on its core product four times in a period of less...

READ MORE >

CSGP/Z/ZG/EXPI/HOUS/RDN: PUTTING RESIDENTIAL REAL ESTATE SERVICES TO THE "BEZOS TEST"

June 10th, 2024

Assessing the winners and losers following the NAR settlement as we ask how Zillow or CoStar can win. Putting residential real estate services to the "Bezos Test" as we try to identify what changes and more importantly what...

READ MORE >

EXPI: Desperate Times Call For Desperate Measures as Shareholders Are Forced to Foot the Bill to Keep the MLM Comp...

May 14th, 2024

For the past week, we’ve been wondering why EXPI shares rallied roughly 20% following the company’s 1Q24 earnings release. Yes the results were better than expected but the KPIs, notably...

READ MORE >

EXPI/HOUS/RDFN/RMAX/Z/ZG/CSGP/DOUG/COMP: Winners and Losers From the Proposed NAR Settlement; 10 Things That WILL...

March 21st, 2024

Last Friday was a rough trading day in the residential real estate services space for ardent supporters of the efficient market hypothesis. After all, the original case against the National...

READ MORE >

EXPI: The Minsky Moment Arrives for EXPI as Agents Seek Greener Pastures; Will the Company Ever Growth Agent Count...

February 23rd, 2024

The “Minsky moment” has finally arrived for EXPI, as the company’s agent count declined for the first time in history.  Never forget, for EXPI’s AGENTS it’s always...

READ MORE >

EXPI: Management Starts to Panic as Agent Losses to Upstarts Mount; Watch Out for LPT Realty

September 11th, 2023

“I was at eXp for 3 years, made ICON Agent every year, but the opportunity to build a big downline at eXp is long gone. I went to LPT Realty and have grown from 30 agents to almost 300 in one year. Best thing I could of...

READ MORE >

EXPI: Concerns About Agent Quality and the Erosion of Downline Revenues Should Be Paramount as the Battle for Talent...

August 15th, 2023

Perhaps sell-side analysts and investors still don’t understand the true nature of EXPI’s business. There’s a reason this company has missed EBITDA expectations SEVEN out of the...

READ MORE >

EXPI: When EBITDA in the Best Possible Market is $80MM and ZERO (or worse) in a Downturn, What’s That Business Worth?

March 1st, 2023

Amidst all of the gibberish about “net promoter score”, Bain consulting books, and nonsense technological assertions, there are some core realities related to EXPI that probably should be...

READ MORE >

EXPI: All They Do Is Miss, Dilute Shareholders, and Try to Hold the Multi-Level Marketing Scheme Together; Lowering...

November 2nd, 2022

Here are some fun facts: EXPI missed consensus EBITDA expectations in four of the past five quarters 12-months ago the consensus estimate for EXPI’s FY22 EPS was $0.78. We now estimate...

READ MORE >

EXPI: As Housing Tailwinds Turn Into Headwinds Can EXPI Keep the “Downstream” Passive Income and Stock Price Dream...

February 14th, 2022

The last time interest rates were at current levels, EXPI was an off the radar residential real estate services company with a “virtual model” and multi-level marketing style compensation...

READ MORE >

EXPI: When the Stock Price Is Your Most Important Fundamental – the SEC Subpoena Version

November 4th, 2021

“On June 1, 2021, the Company received a subpoena issued by the staff of the Division of Enforcement of the Securities and Exchange Commission (the “SEC Staff”) requesting certain documentation and information...

READ MORE >

EXPI/RLGY: Real Estate Wars - The “White Hot” Housing Market Has Masked a RACE to the Bottom Among Residential Real...

August 17th, 2021

The race to the bottom in broker economics.

READ MORE >

EXPI: As Good as It Will Ever Get? EXPI is the Poster Child for the Bubble in Real Estate Agents

August 5th, 2021

               “For the Indians, one run on, let’s see, one hit? That’s all we got? One g—damn hit?” Harry Doyle....

READ MORE >

EXPI: Slowing Agent Productivity Gains Are the First (of Many) Red Flags in a White Hot Housing Market; Let the...

May 6th, 2021

Well that was quite the round trip.  No one rings the bell when valuation compression starts, or for that matter when it stops. EXPI shareholders and their agents (one in the same in this case),...

READ MORE >

EXPI: As Good As It Will Ever Get? Now EXPI Faces the Struggle of Trying to Become a Real Brokerage Firm

March 12th, 2021

“I think, even starting in early 2020, we really backed off the top line number of 10% gross margin for core brokerage, just because as we learned more about how all this mixes together, it would be tough to...

READ MORE >

EXPI: As Good as It Will Ever Get? Someone Needs to Tell EXPI’s New Agents That Downline Opportunities for Passive...

November 12th, 2020

Following a quarter in which EXPI added more than 4,700 agents, generated more than $23.6B in transaction volume, and of course increased the share count by 3MM, there’s really only one...

READ MORE >

EXPI: When Stock Price Is Your Only Fundamental, It’s Time To Sell; Introducing EXPI as a Short Idea with a Price...

September 28th, 2020

The stock market has been extraordinarily kind to “fake it until you make it” stories that operate in large total addressable markets (TAM).  If you run a long/short book in any...

READ MORE >

Current Ideas

KNSL

SELL/SHORT

$230

FRPT

SELL/SHORT

$55

BYON

LONG

$70

EXPI

SELL/SHORT

$4

HUSQ.B

SELL

$50

UFPI

SELL/SHORT

$45

TREX

SHORT

$18

PRDO

SELL/SHORT

$5

STRA

SELL/SHORT

$42

CWH

LONG

$75

CM

SELL/SHORT

$50

RY

SELL/SHORT

$50

ARC

LONG

$5.50

AYI

SHORT

$50

BIG

SHORT

$28

WWE

LONG

$65

XOXO

LONG

$37

RLGY

PAIR TRADE

$10

RDFN

PAIR TRADE

$30

BCO

LONG

$35

ING.PA

SHORT

$35

TRUP

SELL/SHORT

$10

CTC

SHORT

$101

ATGE

SHORT

$15

HCG.TO

SHORT

$0

RON.TO

SHORT

$9

ESI

SHORT

$0

BGG

PAIR - LONG BGG/SHORT TTC

25%

TTC

PAIR - LONG BGG/SHORT TTC

25%

Z

SHORT

$14.00

NA.TO

SHORT

$22

ZU

SHORT

$15

TRLA

SHORT

$20

MCRS

SHORT

$31

APOL

SHORT

$35

OPEN

SHORT

$30

KNL

PAIR - LONG KNL/SHORT MLHR

25%

CSGP

SHORT

$100

GCA

LONG

$8

IPSU

LONG

$20

MLHR

SHORT

$22

LOOP

PAIR - LONG CSGP/SHORT LOOP

40%

THQI

LONG

$35

WPO

SHORT

$275

COCO

SHORT

$0

HNI

SIG

RGR