Purplebricks Share Discussion Threads

[saltaire111] 06/12/2016 10:37

i've not see their forecast for growth in the second half of the year but if they increase the numbers of local reps deployed than you could logically expect them to pick up a bigger share of a smaller second half pie.

salty.

[kmann] 06/12/2016 09:49

I see related parties cashing in their options and selling up after the closed period.

[hillofwad] 06/12/2016 09:42

Salty You still dont get it. I agree with you revenue is normally lower in H2 than H1 and I think that will certainly be the case for Bricks if instruction levels in November are any yarddtick However Bricks have forecasted that this will increase asthe rollout of lPE,s impacts so even you are doubting it The higher the rise the higher the fall when expectations arent met

[saltaire111] 06/12/2016 09:26

Yes, sorry. I'd always expect revenues to be higher in the first half of the year rather than the second half.

When professional investors invest several millions into a new company, I generally take notice of this and take it into account when assessing the viability of an investment. It is just one factor among many others but it is an important indicator. This doesn't mean I'm hanging on their coat tails - just trying to consider all aspects of an investment opportunity.

I see PB's price is up again this morning.

Salty

[opodio] 06/12/2016 07:26

Three complaints against Purplebricks upheld by advertising watchdog

Three complaints have been upheld against Purplebricks by the advertising watchdog.

As a result Purplebricks must not repeat some claims that were in a TV advert.

A further two complaints were not upheld.

The complainants who approached the Advertising Standards Authority with concerns included a Purplebricks competitor, House Simple. The other two were members of the public.

The complaints revolved around claims made in the TV advert and also online.

The TV advert featured two men supposedly Kenny and Michael, who said: “We used to be a high street agents. But now we’re purplebricks.com. A revolutionary new way to sell your house that could save you thousands of pounds.”

At this point in the ad, small print appeared at the bottom of the screen stating ‘Based on average estate agent’s commission – Source: Which? survey 2011’

The TV advert ended with a text message saying: “Nothing to pay upfront” and featured a voice-over that stated, “Visit purplebricks.com and book a free valuation”.

The Purplebricks text on their website said: “No upfront fees . . . get the best price – our local property experts take care of it.” Below that was a fee.

The claim “Nothing to pay upfront” in the TV advert was challenged on the grounds that it misleadingly suggested that consumers would only pay if their property was sold.
House Simple challenged the same claim on the Purplebricks website for the same reason.
HouseSimple went on to challenge the claim on the website: “No upfront fees . . . get the best price – our local property experts take care of it.” This was on the grounds that it misleadingly implied that Purplebricks achieved a higher selling price than other agents, and whether this could be substantiated.
HouseSimple challenged whether it also misleadingly implied that Purplebricks charged lower fees than its competitors.
The final challenge was from a complainant who understood that the “Nothing to pay upfront” offer required consumers to commit to a ten-month agreement and also use the solicitors the advertiser provided. The complainant challenged whether the TV advert omitted material information.

[opodio] 06/12/2016 07:24

House Simple - free service until house sold

[hillofwad] 06/12/2016 05:36

Salty Well Bricks certainly are interested in Trustpilot as their Rating underpins their whole expensive advertising campaign .I guess you are interested in them turning a profit . Hanging on the coat tails of certain investors is almost akin to saying you back all of Spotlights racing tips because they won the naps tables. The original investors have already made their money on the float Even Woodford gets a few wrong its part of the game Just look at Capita
"I dont expect H2 to exceed H1 its not how this sector works" conveniently forgetting this has been earmarked as a growth company and that revenues have been forecasted to increase rapidly in the Hardman report!!!as the increase in coverage by th LPE,s begins to bite . So are you agreeing that H2 revenue will be down so they are making a loss? This is not what the investors were expecting

I guess that was a typo when you add further when you go onto say that revenues to be higher in H2 than H1 .


NY BoY Well at least Foxtons and Bricks carry no debt not like the unfortunate Countrywide with a £400m debt burded to carry through a flattening market

[ny boy] 05/12/2016 23:14

Which one is now better, these or a beaten up FOXT share price of 101p?

[saltaire111] 05/12/2016 20:42

I wouldn't expect H2 revs to be ahead of H1. That's not how this sector works. The peak period in the house buying cycle is q2. I'd always expect revenues to be higher in H2 rather than H1.

Salty.

[saltaire111] 05/12/2016 20:40

I'm not really interested in trustpilot. I'm more inclined to back the judgement of the investment pros who have put their money where it matters - on the line with PB. The traditional estate agency model is ripe for disruption and PB is delivering in this space. Salty's buying.

Salty

[hillofwad] 05/12/2016 19:40

Just observing not predicting. Instructions have fallen in recent months FACT despite smoke and mirrors RNS today. If you cant see how the Trustpilot is manipulated to suit their advertising campaign -take the rosetinted spectacles off They have had over 10k reviews on this platform which must be the highest ever repsonse in customer history Over 90% of Brick reviews are single reviwers Dont you find that strange of all the other comapnies these reviewers interface with on Trustpilot they are so bowled overby this one comapny to make a review an dno others! Dont you think it smacks of desperation trouble Bricks go through to remove unfvaourable reviews As you say every estate agent recives complaints not many try to hide them!

I will give you 1 prediction that H2 revenue doesnt exceed H1.Only time will tell

[prewar] 05/12/2016 18:20

Salty

Ignore Hill he's predicted various apocalypse scenarios for PURP over the last 12 months, not got one right yet. Reminds me of "Economists predicted ten out of the last three recessions!"

He can find a few online reviews where everything hasn't gone perfectly though, not sure I've ever come across anybody before having a complaint about an estate agent!

[prewar] 05/12/2016 18:16

Chapchip, you like most people frequenting this thread don't have a clue. PURP get paid on instruction, clearly lack of completions would ultimately tarnish the brand, that hasn't been a problem to date as completions have been high, higher than bricks and mortar agents.

By charging up front PURP don't have the aggro of dealing with time wasters who fancy chancing their arm and aren't committed to selling.

[hillofwad] 05/12/2016 17:27

Salty .Sorry one brother has like some snake oil salesman already waltzed off to the sunset with his backpockets stuffed before a penny profit is turned .Both brothers have been involved with some lame ducks
The management seem to be overly preoccupied in manipulating the Trustpilot ratings removing all the unverified unfavourable ratings but retaining all the favourable ones. Its so obvious.
In addition my experience in contacting them They lied about a date one of their properties was listed The call centre operater was unable to advise me how many properties the local expert was looking after or how many miles he lived from my postcode(it transpired it was 40 miles!! In addition on a property they had as SSTC they were never proeprly ly instructed and was sold privately No im not impressed

The real comaprison will be H1 and H2 As Salty said seasonal problems which means that profits are likley to go back under water

[chapchip] 05/12/2016 17:08

i m not convinced this will stay the course either........

instructions up 108%...instructions mean jack all.....you have to get a buyer and get the transaction through. and with no meaningful sales progresser like there would be in a traditional agent, fall through rates will be way higher.

Fall throughs = unhappy vendors mean other agents will pick up the instruction

[marky55] 05/12/2016 16:50

"For the six months to the 31(st) October 2016, instructions are up 108% compared to the corresponding period........Current trading is showing similar year-on-year instruction growth with no material slow-down from Brexit."

[saltaire111] 05/12/2016 16:35

I guess November's bound to be one of the lower volume months - it's low across the entire sector due to seasonality. I quite rate their management. They're obviously sufficiently credible to gain significant backing from the investment community so why would you think they're a couple of chancers?

And their site and services are effective. And gaining ground by the look of today'/s results. I'm not so sure why you're so pessimistic about their prospects.

Salty

[hillofwad] 05/12/2016 15:20

Prewar I have gone phonetic. Im no great fan of listed estate agents either especially Countrywide so you have made a wrong assumption Its just that I dont think a couple of chancers from Solihull with a good idea , limited technology and a limited management team are going to win the day Others will pick up the baton an d run with it It will be in a form very similar to Purplebricks Keep watching those monthly figures I would guess that November has been one of their worst months this calendar year

[prewar] 05/12/2016 14:12

Hill

At estate agent school did they not teach you how to use spell check and how to punctuate sentences?

It would help your listings displayed in shop windows no end. That way any passing dinosaurs who still buy houses this way will be able to understand wtf you're on about.

[saltaire111] 05/12/2016 13:59

While I accept that PB isn't Rightmove, the development of PB is not dissimilar. When Rightmove started, it faced lots of competition from other areas, not least the regional press which at one time had twice the number of properties listed in its Fish4homes portal as Rightmove. What Rightmove did right was get its technology and customer service right, and it went through the pain barrier of investing heavily on its branding. In this respect, PB is following a similar pattern of development. There are lots of 'me-too' competitors, but none has yet got anywhere near PB's brand awareness. The fact that PB made a very modest profit so early in its brand development strategy is extraordinary, in my view.

[saltaire111] 05/12/2016 12:45

Superb results for a company that's still in its very early stages of development.

Encouraging.

Salty