Purplebricks Share Discussion Threads

[rogthepodge] 19/9/2018 12:14

where are the L.P.E.'s going to go in a downturn? It won't be the bricks and mortar agents!

The government will have to cut stamp duty, or abandon Brexit, to get housing stock turnover moving

[cowtrader] 19/9/2018 11:59

ltcm1 you are right, I have just done the sums myself as I initially found that hard to believe.....! here is my calculation on axel springers loss................ they bought the majority of their shares at 360p. current share price 232p.
from these numbers, they are down a whopping 35% on their investment........ which means they need to make 53.8% just to break even!!! This equates in monetary value to a loss of £43,000,000.... Ouch! this is not taking into account their further additional investment of £9m at 307p. they say only risk what you can afford to lose....... I wish I could afford to throw 43 million into a black hole lol

[cowtrader] 19/9/2018 11:40

Thanks....... and asides capital investment, I am yet to see what else Axel Springer have brought to the table...... I wonder if the BoD's/investment managers at axel springer have realised they have backed a donkey? the board at PURP must be under some serious pressure from their institutional and overseas investors to answer for the languishing share price........ if it was me I would be going mental..... I wouldn't like to see my cash evaporating into thin air lol

[cowtrader] 19/9/2018 11:40

Thanks....... and asides capital investment, I am yet to see what else Axel Springer have brought to the table...... I wonder if the BoD's/investment managers at axel springer have realised they have backed a donkey? the board at PURP must be under some serious pressure from their institutional and overseas investors to answer for the languishing share price........ if it was me I would be going mental..... I wouldn't like to see my cash evaporating into thin air lol

[chucko1] 19/9/2018 11:21

Cowtrader, to extend what you are arguing in your excellent post, current high cash spend is buying them a brand and a first mover advantage in this “new way (?)” of selling homes. Fine, except that there is the strong headwind of a much slower market in the U.K. (the other countries possibly rather worse), so this spend is having perhaps only half the effect that was originally intended.

If they are not successful in establishing the brand, as there is little barrier to entry, they could be in a sad situation in a year or two. The risk of this, in my opinion, does not support the current valuation by a distance. As ever, I am talking about the long term, not transient share price nonsense.

[ltcm1] 19/9/2018 11:21

cowtrader you seem very well informed as to the situation here.

Axel Springer need a 50% gain just to get even!!!

[bulltradept] 19/9/2018 11:16

Support @ £2.00?

[ltcm1] 19/9/2018 10:37

We could be looking at an upside down pyramid here. If sales downtick the 'property experts' could leave en masse. I know Rog says a flexible workforce is good but what happens if the workers can't make a living here?

If they are not careful they will end up with a bunch of kids working for peanuts here should the market go very quiet, which some say it is starting to do in the South East.

Rog I have no position here so am not crowing about this. Good luck if you are still holding.

[cowtrader] 19/9/2018 10:02

any private investors who have a long position in this company and check this board are actually fortunate to have come across the harsh realities posted by many on here. as it gives them an opportunity to get out now and cut their losses before its too late, even if the uk turns a profit will it cover the losses made in the US and Aus? UK lpe headcount is lower again, i work it out now to be around 580 (excl. lettings)

[rackerrs1] 19/9/2018 09:58

downtick can only be from a bluey - hmm very gracious.

[cowtrader] 19/9/2018 09:44

the wheels on the bus come off off off, off off off, off off off,
the wheels on the bus come off off of, pur-ple-bricks

[rackerrs1] 19/9/2018 08:58

Andy
as i mentioned earlier this week i do believe its a brave man to continue to hold these, so i dont disagree. Massive headwinds from what i see. Dont see any viable support either until around £2.10

[andy] 19/9/2018 08:52

rackers,


You don't think the price will start with a 2 soon?

I think this still looks way overvalued personally, there's nothing unique about what they're doing, and in a sticky property market it won't work, IMO, as indeed they have confirmed in Australia by having to change their MO, as I correctly predicted ages ago.


I'd love to hear your rational explanation to justify the current market valuation.


As rightly mentioned above, Canada has moved into a housing recession just as PURP announced their deal there, the timing was terrible!


And as anyone that visits Canada knows, the ridiculous rise of property prices there just had to come to an end, and it will be really ugly as they have been using their houses as ATM's much as Americans were a few years ago!

[cowtrader] 18/9/2018 20:49

america not making money, australia not making money, expansion in canada timing wrong as i understand they are in a property bear market over there, Uk generating small revenue in one hand then ploughing it back into advertising, brexit around the corner and all the uncertainty that goes with it. I cannot fathom what they could possibly put in their next rns that could lift the share price any private investors who are long on this good luck to you and if the price reverses back in to an uptrend then fair enough but i simply cannot see it happening in a month of sundays. if someone can justify the 720m market cap to me with a short, sharp, reasonable explanation of where the 'value' lies within this business then im all ears. farm animal rating: strong sell

[andy] 18/9/2018 20:42

sb888,

yes, even if it halves from here, it will still be valued at £360 million!

[ltcm1] 18/9/2018 20:25

Purp will fibonacci from 300.

[bbmsionlypostafter] 18/9/2018 20:05

150p by Xmas.

[sb888] 18/9/2018 19:54

Must be a really expensive place to sell a property in Australia. How can they just such a high price to sell, pre payment too, when theyre supposed to be a cheap agency?

Quick google search suggests its 6%

[topvest] 18/9/2018 19:47

Hmm - share price has now halved from the top. Its definitely in a downtrend. Consensus downgrades continuing are likely as well given the housing market is struggling.

[sb888] 18/9/2018 19:37

Andy, it will have a 2 in front of it in a few months, but only one number afterwards imo

[rogthepodge] 18/9/2018 19:32

so childish, one has to wonder if it might be one, pretending to be many?