Purplebricks Share Discussion Threads

[1giraffetrader] 06/7/2020 10:40

Fair enough dennis, here for a punt, good luck to you. There were some bulls saying this is going to be the next Amazon.... that is where the 'going to the moon' logic came from. Long story short, if an estate agent did not make a profit last year, they're not going to make a profit this year. In my opinion. 35m cash in the bank as of 30/3/2020. Results allegedly due in 2 days. the one thing to be looking at is the update on their latest cash balance. Company currently has a market cap of 152m. Deduct the 35m cash leaves 117m of 'value'. I guess when the results are submitted they should give an indication of where this 'value' lies.

[7rademark] 06/7/2020 07:10

https://www.dailymail.co.uk/news/article-8492301/Chancellor-Rishi-Sunak-AXE-stamp-duty-six-months.html

[dennisbergkamp] 03/7/2020 16:45

Don't think anyone is expecting it to "moon"! It's whether it justifies a higher value than the 40's, and I feel that is warranted as there is market activity and if people want to spend less on their sale, then as long as they can promote the value of their properties, then this is the best option, especially if values fall too, then they'll want to save as much as possible.

Obviously, no one can tell where anything is really headed as this is all uncharted territory, so yes it's risky as is everything else, but at this price, it's worth a play, IMO

D

[1giraffetrader] 03/7/2020 16:17

Yet more radio silence from the bulls.
Coronavirus: UK firms slash more than 12,000 jobs in two days.... That doesn't even include Cafe rouge and Bella Italia which went into administration in the last 48 hours. To quote from the article..." Up to 5,000 job cuts at Upper Crust owner SSP Group
Up to 700 jobs at Harrods
About 600 workers at shirtmaker TM Lewin
Up to 900 cuts at management consulting firm Accenture
300 staff cuts across Virgin Money, Clydesdale Bank and Yorkshire Bank
1,700 UK jobs at plane-maker Airbus
And 1,300 crew and 727 pilots at EasyJet
WH Smith, Bensons for Beds, Wrights Pies, tableware-maker Steelite International, the Adelphi Hotel in Liverpool and Norwich Theatre Royal have also announced plans to reduce staff."

And some bulls still think this stock is going to the moon. Why on earth when job security is at the top of a lot of peoples agenda would they want to take out a massive home loan?
I would love to hear a bullish response to this. The above statistics are fundamental, so no silly if's, but's, maybes or speculation.
I guess that's why we have winners and losers in a market.
Low deposit mortgages are not easy to get hold of at the moment.

[hillofwad] 01/7/2020 10:59

Been adding


Yes Axel's man Wiele has left the company (to be replaced by another) but that probably is more down to his role in the newly privatised Axel and their well heeled ambitious partners KKR


Axel having invested jointly with Bricks in Homeday still showing plenty of skin in the game

So wouldnt draw too much from that

The good news is coming from the coalface where its looking very good indeed

Yesterday was a bumper day on instructions nearly back up to full speed

This beast is about to unleash with or without Vic

[1giraffetrader] 01/7/2020 10:16

Radio silence again from the bulls. Fair play to those of you who sold out a few weeks ago on the spike.





It's not looking very good, is it?

A poster on another board recently revealed one of the senior guys who moved over from Axel Springer has recently departed from PB.

We've had radio silence from Vic as well....

[1giraffetrader] 22/6/2020 18:31

I agree conardj, it is more of a question as to how much they have burnt through this quarter. I disagree Dennis, I think it will make a difference to downside. If market cap values this company at 145m. Deduct the 25m cash balance (speculation) and the home day investment of 5m (speculation), it leaves 115m..... where is the 115m of value ? To my knowledge they don’t have any other assets. Still no sign of a group profit or any divi payments for patient shareholders

[dennisbergkamp] 22/6/2020 13:31

I thought we'd get an announcement in June at some point, based on previous updates.

Will dictate the upside, doubt it'll make much difference on the downside unless there is a heavily discounted rights issue / II raise

D

[hillofwad] 22/6/2020 13:02

Well they have probably taken about £9m through the door since then Paid out a lump into Homeday maybe £5M? I would guess they still have £25m + still in the can

[conardj] 22/6/2020 12:35

If? Surely its just a matter of how much theyve eaten into it.

[1giraffetrader] 22/6/2020 11:02

Update must be due soon, cash balance as of 30/03/2020 was 35m. It will be interesting to see if that has eroded any further this quarter and if so, by how much

[hillofwad] 18/6/2020 15:33

Housing market in for a challenging time but where does that leave Bricks . Should tick along OK .Instruction levels are satisfactory post lockdown


Instructions levels in Canada at just over 38k so revenue there over £25m pa

Certainly at the current share price a firm hold with the possibilty of someone arriving at the door to put it into play

What was pleasing to see is Axel were still up for some more investment into Homeday which could indicate they are likely to remain insitu

[wester1] 18/6/2020 14:23

Of course there are headwinds with the industry just now, it's why the shares are trading at 50p not £1.20. Covid will result in greater unemployment and therefore some potential price and volume pressures.

However QE by central govt is substantial and will encourage lending. It might not counter act loan to value changes but is a green shoot. There is a pent up demand in the housing market, and an agency that is focussed on digital/web based systems must have a distinct advantage in this socially distant society.

Equally Scot Govt confirmed that their housing market opens up from 29 June so more transactions likely and will free up some cross border deals where people were relocating etc.

It's not all doom and gloom you know !

[7rademark] 18/6/2020 14:21

I agree it's not going to help matters but covid is temporary and so will be any financial offsets.Think you need to chill out a bit mate, go and get some fresh air maybe, your very sensitive, we're you arguing down pb at 400p, that was the time to do so, not so much now,

[7rademark] 18/6/2020 11:00

The increased deposit will effect the housing market as a whole, one could argue that pb could even be more attractive than a traditional given that people will look for cost savings even more.I'm fairly relaxed at the current sp, with that said I wouldn't be at 400p.Ref your comments that longs must hate you posting, not really I couldn't give a toss if you post, what you post or when.

[1giraffetrader] 18/6/2020 07:28

Not even a modicum of well reasoned logic from the bulls yet again..... why am I not surprised lol. They must hate when I post because it brings them straight back to reality

[1giraffetrader] 17/6/2020 22:09

The UK's biggest building society has tripled the minimum deposit it will ask for from first-time buyers. Nationwide caps mortgage lending due to virus “The Nationwide will lower its ceiling for mortgage lending to new customers in response to the coronavirus crisis. Nationwide has reduced the proportion of a home's value that is willing to lend from 95% to 85%.“
“So for example, if a property costs £100,000, a new buyer would now need a £15,000 deposit rather than a £5,000 deposit.“
Other mortgage lenders are likely to follow suit,
So how is this going to help PURP exactly? I would love for a bull to enlighten me with some proper, well reasoned logic

[dennisbergkamp] 16/6/2020 08:23

Link cleared the Woodford set, we have new investors, so I’m back in today.

D

[hillofwad] 14/6/2020 10:32

Well certainly Bricks have flattered to deceive .The territorial shakeout in March has produced a few casualties. 2019 saw new instructions drop

However the score on the door doesn't lie .Emerging from lockdown hitting the ground d running and already 75% ++ of what they could expect for June

The new fund on the blocks INFLECTION POINT could see the arrival of similar small fundS accumulating 2-3% positions

Here is their philosophy

"Our screening process involves detailed checks and an understanding of the common features of successful Emerging Growth business models, which are often subtle. The stock market’s inefficiency in this area arises from its experience of seeing so many other ‘good companies’ fall into the chasm, and being unable to tell between the real prospects and the ‘fakes’. In our view, some of the largest anomalies can be seen in the valuations of Emerging Growth companies which are successfully exploiting an idea that failed in previous iterations (the stock market has often lost interest by the time the technology works well enough for the real market to take off)."

[andy] 12/6/2020 13:32

7,


£3.60 if memory serves me correctly.


Still, if they keep buying they'll push themselves into profit :-)


Then they can take it private and congratulate themselves on a profitable purchase.....

[7rademark] 12/6/2020 09:38

Wasn't the share price 400p when that fund purchased

[beeks of arabia] 12/6/2020 09:05

"I'll never learn"? What pray will i never learn?

[1giraffetrader] 12/6/2020 09:03

no-one cares beeks. You'll never learn. The exact same was said about axel springer 2 years ago when they invested. Just because they've got deep pockets doesn't mean they will make the right stock picks......"If correct could really give a boost." LOL