Purplebricks Share Discussion Threads

[coscos] 03/6/2020 13:04

Nice rise, 60p first stop.

[coscos] 03/6/2020 12:08

Investing in stocks is always an 'if', that's the nature of the game, but there's no denying PURP have made massive inroads in the real estate market much to the chagrin of bricks & mortar agents. If anything, this lockdown period has cemented the idea of using internet companies to get things done. I expect a positive update from PURP next time around especially if there's a stronger housing rebound than predicted.

[1giraffetrader] 03/6/2020 11:15

I don't even hold a position here, long or short. I do however find it funny how the bulls are finding comfort in a short term rise in the share price Try zooming out to a 1yr or 2yr chart and looking at the bigger picture... I have called this right ever since I started posting here back in 2018, from 300p. The bulls here also seem to ignore the fact that the cash balance has eroded from a colossal 154m 18-24 months ago to sub 34m today. Ignorance is not a good emotion to use when trading financial markets.
Quote coscos2 Jun '20 - 13:29 - 1481 of 1494
0 0 0
From last RNS
'Following these stringent cost cutting measures there will be a materially reduced level of cash burn if revenue is significantly reduced over a sustained period of time.'

If things pick up sooner than expected and cash burn remains low, the outlook will be more positive...... Both you and PURP are as bad as each other for using that magic word again.... IF... If this... If that.... Of course PURP are going to put whatever positive speculative spin they can on their updates to the market in an attempt to give shareholders some sort of hope...

[lukehold] 03/6/2020 11:03

Why are there 2 purp threads moderated by ?Andy?, is he a control freak or trying to manipulate conversation?

[lukehold] 03/6/2020 11:03

Another baaaad day for predictions lol

[thorpematt] 03/6/2020 10:55

No ifs and buts.

Only likelihoods, strong possibilities and definites.

The unemploymement rate IS at historically low levels, likely only to rise to a modest at worst.

Italy has just announced record pre-orders on its bonds (ITALY FFS - its a basket case!). The FACT is no intrest rate rise is coming because forward yield curves insist upon it.

Fundamentally house prices are mostly predicted by interest rates. Record lows = record high prices.

[ltcm1] 03/6/2020 08:45

rog is it true you invested in lastminute.com???

This time it is lastchancesaloon.com for bulls.

Hope you enjoy cake in the face rog!!!

[coscos] 03/6/2020 08:34

Hope you enjoy the ride shorters.

[1giraffetrader] 03/6/2020 08:12

Yet again from the bulls it’s all if’s, but’s and maybe’s. No real fundamental points to argue just speculation

[fund1] 03/6/2020 08:06

Close to the breakout.

[rogthepodge] 02/6/2020 23:51

looks like a few suckers are still short
possibly Sharelosses subscribers?

[dennisbergkamp] 02/6/2020 22:13

Far more control from the government and the BOE than the 90’s. Interest rates won’t rise.

Possibly insurance rates for unemployment cover may.

D

[thorpematt] 02/6/2020 21:44

Comparing to previous house price falls.
I remember this because many of my work colleagues lived this over the course of 7 day weeks and 12 hour days during the late 80s and early 90s.


HOUSE PRICES INDEX: -



UNEMPLOYMENT RATE: -




INTEREST RATES: -



As ever, the charts speak for themselves. But lets just comment that the trigger for falling prices was in no way an unemployment rise. Unemployment was FALLING when the prices fell off. What caused the repossessions and the negative equity was quite simply the revese in interest rates.

For those that don't remember it, it is quite simple to understand: Imagine (against a backdrop of falling unemployment, rising house price and FALLING interest rates tha you sign up to a 25 year mortgage based on an unfixed interest rate of 8% (with assurances that it's going to normalise at the long term historical rate of circa 6%....And then it rise to 14%. Suddenly you're working 7 days a week and you still have to hand your keys back.

House prices are about affordability. Affordability is about interest rates first and employment 2nd (purchase price is a very lowly third).

Understanding Interest rates is the game here.

Unemployment rates? - I refer you back to the chart. Yes those are %s !

We are at 3.9% now, not 8% or 10%. Granted it's likely to rise but when bank lending rates are virtually zero there is nothing like the debt acrual of 14%, banks won't foreclose it anything like a swiftly.

So. Unless you are absolutely confident in a long term high unemployment scenario then price crash is not a likely scenario IMO.

[philosopherad1] 02/6/2020 19:26

https://en.m.wikipedia.org/wiki/Lastminute.comI've mentioned this before and will again. Purp is lastminute.com

[ltcm1] 02/6/2020 15:38

rog you have a choice. Get 40p now or 10p in a year's time.

Purp are far too thinly spread to cope with a crisis like Covid, unless they keep sdvertising constantly they will dwindle like the others whose names I have now forgotton.

rog I said 'sell' at 450p. Purp are now 40p and I say 'sell' again to you.

Pride comes before a fall rog!!!

[fxprotrader] 02/6/2020 14:45

Those kind of comments have gone out of the window when in lockdown!!

[coscos] 02/6/2020 13:29

From last RNS
'Following these stringent cost cutting measures there will be a materially reduced level of cash burn if revenue is significantly reduced over a sustained period of time.'

If things pick up sooner than expected and cash burn remains low, the outlook will be more positive.

[fxprotrader] 02/6/2020 13:10

What has been the cashburn when theyve had little or no income over the past few months ? I wonder how much money they have left now

[coscos] 02/6/2020 12:33

Cash burn has been horrendous, but they state that measures put in place will significantly reduce cash burn if revenues continue diminished for a sustained period. Therefore if revenues pick up quicker than expected, they stand to gain from the reduced cash burn going forward.

[fxprotrader] 02/6/2020 12:22

What about taking into account cash burn coscos

[kramreklaw] 02/6/2020 12:00

How do you measure debt?

[coscos] 02/6/2020 11:47

I anticipate a strong recovery in the housing market especially with virtually zero interest rates so PURP will benefit going forward. I know of at least 2 local bricks & mortar estate agents that have been struggling due to companies like PURP, hence my investment here at a very attractive price for a company with zero debt.