Purplebricks Share Discussion Threads

[andy] 16/8/2020 09:32

This is the reason I thought the property market was going to slow down, and now it's becoming apparent.


Lenders are being more cautious, and quite right too.


This will impact all agents including PURP.

[coscos] 14/8/2020 12:00

hillofwad
Read the UBS analysis - that's all you need to concentrate on. They are privy to more company information than either of us.

[hillofwad] 14/8/2020 11:57

Coscos

Read the posts and look past the share price .

Frustrated ,yes but bitter far from it the rise in the share price Having bought a number at 35p I couldnt be more happier in the way the share price has risen

£66m in the hole as well . Marvellous but frustrating that a half decent set of BODS would make this fly

However which bit about current sales inventory being well below FY 19 and before COVID trending downwards are you happy with?

Which bit about a lettings division which is failing and they are doing SFA about it

[coscos] 14/8/2020 11:02

Lots of bitterness on this thread from supposed shareholders who do nothing but deramp the stock.
Chances are they are bricks and mortar estate agents suffering at the hands of PURP.

Onwards and upwards, corporate action to follow.

[hillofwad] 14/8/2020 10:17

Still throwing good money after bad in Germany.
No lessons learned

[hillofwad] 14/8/2020 08:40

"PURP are turning their business around "

I only wish

I am frustrated £66m in the Tommy and its going to be wasted by the incumbents White knight needed

I am still in and sure I have enjoyed the share price rise which I am grateful for With a different set of BODS I would be all in.



We have an invisible CEO who is seemingly obsessed with the tech which has added no revenue streams

Instructions are unlikely to exceed FY 19 and July is looking very much like a one off

You also fail to understand the importance of the lettings side of estate agency .The rest of the property world does

They have done nothing either to kill or cure it

[coscos] 14/8/2020 08:25

hillofwadYour analysis is looking more and more like 'yesterday's news'.PURP are turning their business around and for some reason you don't like it. Personally I believe for a disruptor stock the shares are very cheap. Could well see multiples of the current share price over next 2-3 years, especially as interest rates won't be rising anytime soon.

[hillofwad] 14/8/2020 08:06

How can they increase their market share when one half of their business is in a tailspin?

Is this the same UBS which increased their stake in Foxtons June last year where the share price has dropped and dilution


"Swiss investment bank UBS has increased its stake in the troubled London estate and lettings agency Foxtons to over 10 per cent.

A statement to the London Stock Exchange yesterday revealed that UBS had increased its stake from 8.37 per cent to 10.59 per cent. "

[coscos] 14/8/2020 07:45

UBS think PURP is heading towards a 8% market share. If they can do this, then expect to see a strong recovery in the share price, upwards of 100p. That's if they aren't bought out before then....

[coscos] 14/8/2020 00:18

Purplebricks should enjoy purplest patch if UK housing market is recovering, says UBS2020-08-13 11:39:00A UK property recovery seems to be underway, analysts at the Swiss bank said    Purplebricks Group PLC (LON:PURP) shares have been upgraded by UBS on expectations of a UK property market recovery.The Swiss bank, which significantly cut expectations for the low-cost digital estate agent's performance earlier in the early weeks of the UK coronavirus lockdown, said recent industry data suggests that the housing market is making a strong recovery.WATCH: Purplebricks CEO focused on building share in UK through better customer experiencePurplebricks "should benefit given its transaction-based nature", which means its earnings are highly levered to a UK market recovery.As a result, UBS now expect £83mln of revenue in the 2021 financial year, 10% ahead of the current consensus forecast.Further potential upside exists, the bank's analysts said, if the 25% instructions growth seen in July sustains till the end of the year, calculating that a 10% change in instructions would increase underlying profit by £4mln or 38% for the next financial year."Purplebricks' national online model means it doesn't incur branch and admin costs of an equivalent sized network," the analysts said."We estimate in the long term this gives them a 20% cost advantage versus traditional agents, which means they can charge significantly less to consumers while offering a similar service."As a result, they expect Purplebricks to start gaining market share again in a stable UK market to reach 8% in the long term, versus 7% previously and 5% now.Other positives for the company included Purplebricks net cash of £66mln with "good access to liquidity" post the sale of its Canadian business, plus expected benefits in future from innovation in technology, marketing and new pricing models with a focus on driving growth.UBS upgraded Purplebricks to a 'buy' recommendation and lift its price target to 100p, versus a share price that closed at 66.6p overnight.

[rsvr1] 13/8/2020 20:54

As someone who has just sold my house using Bricks I can only say it say been a good experience. I think the reason that the price has risen of late is due to changes in Stamp Duty. I’m looking to buy another house and every estate agent tells me the market has gone mad. Without exception the estate agents tell me (and I’ve trawled around more than a dozen) that they have never known anything like it. DYOR

[coscos] 13/8/2020 08:06

I smell another large director buy announcement coming......

[hillofwad] 12/8/2020 10:35

Very robust £60m +in the Tommy
It's a crying shame that they haven't got the right team to make it sweat

[coscos] 12/8/2020 10:08

85p next stop on way back to 100p. Enjoy.

The company is in a far more robust position than pre-lockdown. Not many companies can say that.

[hillofwad] 12/8/2020 06:42

I have sold down 75% and grateful to put some hay in the barn


Further evidence of the failure of Bricks to extract value from a lucrative part of
estate agency

[spacedust] 12/8/2020 00:47

My.oriignal plan was to sell Wednesday but i dontt think the GDP figures will be looking great. 14% contraction predicted previosuly but now reports are saying it'll be more like over 15% decline.

[coscos] 11/8/2020 22:30

Well done on making a profit, however I think there is plenty of gas left in the tank. Onwards and upwards.

[spacedust] 11/8/2020 22:05

Sold out today. 30% profit. Sp is all that matters. Just remember

[hillofwad] 11/8/2020 09:56

"I would say a lot has changed since then, wouldn't you?"

Indeed but nothing to make a lettings business unviable ,far from it

Upping the ante on digital should in theory add value .All the agents are teching up

Lettings is an important part of the estate agents offer Just ask Foxtons or Countrywide



Rental Demand has stepped up since easing of lockdown so nothing has changed there to make instruction levels fall off a cliff

Its been a fail You can blame the managemnt

[coscos] 11/8/2020 09:08

I would say alot has changed since then, wouldn't you? Their strategy has changed accordingly, hence the benefit of being a digital property agent which gives the flexibility to adapt quickly to changes in the market.The focus now is purely on growing sales through a revised pricing plan and furthering market share with add-on's. They have the cash and people in place to do it, and the benefits will be seen over the next few months.

[hillofwad] 11/8/2020 08:56

There is SFA to pass onto a third party .
If you read the January story they flagged Lettings up as a"growth area" and an important part of their business

Despite restructuring and adding on an expensive layer of new Divisional Directors its died a death

Property management is also an area where the"tech" does play an important role in efficency .the very thing they are bleating on about

They also flagged up in the latest update introducing other potential revenue streams .electricty etc Then having a large lettings inventory provides them with a captive audience

" I also don't agree that 2019 was their peak for instructions"

Priceless You have just suggested them passing on their lettings side

FY 2019 was the peak year for both sales and lettings instructions starting to fall off over 20 months ago ,well before COVID

This was despite a £20m +marketing spend Don't take my word for it look at the stats

[coscos] 11/8/2020 07:39

I don't believe lettings are the focus here and they would do well to pass that part of the business on to a third party.I also don't agree that 2019 was their peak for instructions - I think the lockdown has played perfectly into their business model and demand for new instructions will continue to rise for a considerable time yet.The announcement coming soon lowering their initial fee they will attract more sellers and it's not inconceivable for a 'no sale, no fee' model to be introduced also. If they get the next part of their business plan right, the 10% market share goal they've set their sights on is achievable.