Purplebricks Share Discussion Threads

[andy] 10/7/2017 09:25

Pete,

The dreaded IC "kiss of death" buy comment!

I don't think the IC is allowing for a property price fall, nor the competition changing tack to emulate PURP's business model, afterall it's not difficult.

[cheshire pete] 10/7/2017 07:55

Investors Chronicle 7/7 to 13/7 'buy' rating. Closing comment: "When fully mature, Purplebricks will have a low fixed-cost model, and by FY 2020 Peel Hunt reckons that pre-tax profit will increase to £45m. The shares are up from our buy tip (135p, 7 Apr 2016) and there's plenty more to come. Buy."

[buywell3] 10/7/2017 07:28

I have been looking at property that is going to auction in several counties at the weekend via the internet.

I have noticed more ' receivers ' properties included than for the last few years

These have been Landlord type rented apartment blocks

The UK property market is now over 20% Landlord owned for rental income.

The highest level of Landlord ownership ever.

[lydnem] 09/7/2017 14:51

I just say it as I see it

[cheshire pete] 07/7/2017 21:24

Lydnem,
You forgot to mention your modesty as well.

[rogthepodge] 07/7/2017 18:08

Thanks for the quality analysis of PURP Lydnem / ElCapital

Q.E.D.

[rogthepodge] 07/7/2017 16:27

Andy, if you choose to believe that I was referring to you

that is your choice!

maybe you are being a little paranoid?

Lydnem / ElCapital is the prime suspect

[andy] 07/7/2017 15:58

rog,

I think they are both equally derogatory personally.

If you don't rise to their bait, they will eventually look silly and stop.

I have never referred to you in such terms not will I ever do, no matter what you call me, because I don't feel that retaliation gets anyone anywhere.

The Middle East is the perfect example of that!

[andy] 07/7/2017 15:36

rog,

Why refer to people with a contrarian viewpoint as "muppets"?

It denegrates your message, we all have an opinion here, and the right to express it in the right way.

I would suggest Simon Cawkwell is a very rich "muppet"!

And you are correct, the P/E here IS very high, and for that reason alone sorters will take an interest here. The higher it goes, the greater the interest there will be.

[rogthepodge] 07/7/2017 15:14

it's on a high p/e

therefore there is a risk that the muppets are correct

but IF momentum continues, and the model works in Cali and the U.S.

the muppets will be very very wrong again

[isaready] 07/7/2017 14:51

Simon Cawkwell a question, well a few;

Does rightmove have a patent?
Does airbnb have a patent?
Does just eat have a patent?
Does asos have a patent or even amazon on say the site?

Software has moved on from years back.

Rather than trying to build software which secures ones right to deliver a forced business model to those who want it, giving them time to build up the business without threat, I suggest, the approach you follow, in this instance is wrong, well from a software perspective.

Software is not as valuable as it once was. Its becoming a commodity to help drive business value, as opposed to technology providing value. The value in technology is now only in niche areas.

So, no they don't have the patent, so what?

Its about the service, the delivery to the clients, the prices. if it gains critical mass, then it will be hard to break. They are one of the few following this alternative approach and have a great chance in gaining critical mass. Once they do, it becomes unpalatable for anyone else to enter it. Simple as that. Short it, but I think you'll lose, as I think you did on Asos years back.

[buywell3] 07/7/2017 13:40

Re selling property in a falling housing market


Has anyone noticed that many sellers tend to take their property off the market if it has not sold , say after around 6 months.

what do you think they do next ?

After waiting for a few weeks they re-list it at a lower price and the new real estate agent says ..... NEW TO MARKET in their particulars of the sale ... and potential buyers think they are looking at a fresh property just come on the market.

Have you noticed this happens ?

[andy] 07/7/2017 13:29

rog,

But he did say he HAD shorted at 419p, I remember the post.

PURP do use local agents, and I heard criticism that when a sale hit problems, there was little support there, but that's hearsay, and some time ago.

That is now 2 online agents charging £99, the competition is already growing, and clearly existing traditional agents are not going to sit there and wait for PURP to wipe them out, so I expect fierce competition in the not too distant future.

In my area one traditional agent has moved across to the fixed fee model already, how many more are likely to follow?

[rogthepodge] 07/7/2017 13:19

I would go with the brand leader, just sayin'

P.S. ElCapital/Lydnem

you were telling us to short this well below 300p!

[lydnem] 07/7/2017 10:48

www.emoov.co.uk/news/2010/07/17/wow-sell-your-home-for-a-fee-of-just-99-with-emoov-online-estate-agents/

[isaready] 07/7/2017 10:33

Can anyone share any view on prospects and what their projections are. It's an interesting model, one which will take hold sooner or later due to the reduction in costs./

I am assuming agents work for purple, but are remote from home, so costs are less. So, they are there are value,sell, but the valuation is done online via the portal and someone turns up.

The traditional model where one goes into a store, says what have you got have probably gone now as you can like anything search first.

views would be appreciated before the mcap seems quite low for the potential.

[lydnem] 07/7/2017 10:31

I only started looking at this as a potential short from around 350 because nicky numb nuts said he was long and he is always wrong. First trade was too early but managed to average up to 419. Happy with that. Went out to lunch and could have taken a quick 70 or 80 pence but on the vino instead and it bounced quickly. Im confident it will be around 300-320 in the not too distant future

[andy] 07/7/2017 10:27

prewar,

I would imagine some got burnt given the spectacular rise here.

Generally many people vanish after taking a large loss, maybe re-appear posting under a new name in the future.

[lydnem] 07/7/2017 10:06

There is a different model which could very much hurt all the virtual EAs

[lydnem] 07/7/2017 10:06

prewar

Read back

I posted when i made them, average 419. Went up to 440ish just after but looks OK now

[andy] 07/7/2017 09:59

bamboo26 Jul '17 - 20:00 - 1028 of 1038 0 0
That will never happen.
Pre payment is essential to ensure that only qualified sellers make it on to the books. PB is happy to leave the chancers to Traditional High St EA's

-------

In a falling market and property tough/impossible to sell (at the price you want at least!) the pre payement option may come under pressure. (I think it will for sure)


Having to pay upfront and not achieve a sale may become a tough sell, when the traditional agent will happily take the property on a commission basis, in the event of a sale, with no upfront fee.

If the traditional agent charges around 1.5%, and outside London an average price is £250,000, then the additional cost of selling by commission isn't that great in the gran scheme of things.

Many people are asset rich and cash poor, and that's where I think a sticky market could hit PURP's model

I personally think this will be fascinating to see play out, Australian house prices already look in trouble, USA and UK will surely follow at some point?

[prewar] 07/7/2017 09:39

Post your shorts up as and when you make them then Oracle or are you another Walter Mitty type?