Industry News

Real estate stocks show mixed results on Wall Street

Fannie Mae, Freddie Mac rebound; Cendant hits 52-week low

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Cendant Corp.'s plan to split into four entities was the biggest news on Wall Street last month for any of the 10 publicly traded corporations that comprise the hypothetical Inman News index of real estate brokerage, mortgage and technology stocks. The "de-merger" of Cendant into separate publicly traded companies that will offer real estate, travel reservations, hotel and vehicle rental services was intended to mollify unhappy shareholders who have watched the company's shares languish, yet the announcement didn't seem to make those folks any happier. A story in the Chicago Sun Times said Wall Street "remained grumpy" about Cendant as the company's shares lost more than 6 percent of their value after the split was announced. The per-share price of Cendant's stock dropped $3.13, or more than 15 percent of its value in October; shares traded at $17.04, a new 52-week low, and closed at $17.31 on Nov. 1. The upside in October's Inman News index came in part from Freddie Mac's and Fan...