GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Baron Funds Comments on RealPage Inc.

May 24, 2012 | About:

Holly LaFon

250 followers
From Baron Funds' first quarter letter: RealPage, Inc. (RP), the residential property software company, reported disappointing results and its stock declined 24%. RealPage explained that rental apartment move-outs were less than expected, which resulted in lower sales of transactional based offerings, which makes sense to us. But since the company trades at a high multiple of current cash flow, any shortfall can cause the stock to be punished. We are non-plussed. We believe that the company is very special, that it can grow its cash flow at about 30% per year going forward, and its shares can increase many-fold if this develops as we expect.

Rating: 2.9/5 (7 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide