Purplebricks Share Discussion Threads

[ih_375993] 28/7/2017 11:58

Hydrus,
Not all areas have London house prices. I recently compared costs on a House of around £175000 in the North West and found the traditional agent offered no sale no fee and fees of around double PURP. Thus if they lowered fee to PURP price and took away, no sale no fee they would break even , profit very quickly.

ie
Trad Agent:
2 houses on with no sale no fee - if one sold and one not sold they get c£2000 minus 2 lots of marketing costs.
Purp:
2 houses up, guaranteed c£2000(approx) whether sold or not.
Many agents would take the upfront guaranteed income, and some are already starting to offer this.

[hydrus] 28/7/2017 11:31

Hmm I think a high street agent dropping their fees by circa 80% but with fixed overheads would go bust very quickly lol!

[ih_375993] 28/7/2017 11:29

Not sure what PURP offers will be 'disruptive' enough to grow like Amazon/Apple etc etc. Any agent in the country could copy it overnight.

[discodave4] 28/7/2017 11:26

maffs Anything less than 460 looks okay to me?DD

[maffs1] 28/7/2017 10:25

P/E is not especially helpful in a share like PURP. It's all about what people think will happen in the future. Some of the big winners over the last couple of years have been on high PEs and have "grown into them" (BOO, FEVR etc).

I'm out this morning as I didn't like the price action, but will look fpr a new entrance.

[prewar] 28/7/2017 06:04

Buywell have you been employing your same P/E logic to Amazon? You must have built up quite a position shorting them, well done you!

[prewar] 27/7/2017 14:54

Buywell P/E now or P/E when all the dinosaurs are extinct?

[buywell3] 27/7/2017 14:52

Mathematicians

Explain this

PURP P/E = +∞

[buywell3] 27/7/2017 14:46

What is PURP P/E ?

try that one

[rackers1] 27/7/2017 14:45

maffs1 - youll be fine. If that serial bunny lydnem is short then its only going up and up

[buywell3] 27/7/2017 14:43

It's being pushed ... this is not PI's

They have not got the means

If I had £ Billions then I could keep this going up for the next 2 years ..... but then what ?

[maffs1] 27/7/2017 14:41

Andy,

the trend is clearly up. Other than that, I just look at price and volume to get a feel to what is happening. Its hard to describe, but I tend to follow William O'Neil's advice for detecting institutional accumulation. His book is gold dust.

[prewar] 27/7/2017 14:39

Ha ha the clueless guessers are here. Have I missed PURP's diversification into Cancer drugs?

High Streets are shrinking, bricks and mortar agents on the high street are less relevant, the ice age is coming dinosaurs....

[lydnem] 27/7/2017 11:06

It will get hit, when markets go into a downtrend in property everything stops. They need a liquid market or numbers dont work

[andy] 27/7/2017 09:55

buywell,

Yes government tinkering with the property market previously distorted the market (think dual tax relief on mortgages) and it looks to have happened again.

It's the same with cars, the news stories today are focusing on the loss of sales, and failing to mention the car tax changes that recently took place that pulled forward sales.

Clearly I would expect ALL housing sellers to be effected, including PURP, although any downside here may be less if they have managed to significantly increase market share at the expense of the traditional AE.

[buywell3] 27/7/2017 09:41

News from Countrywide today

As anticipated, the first half of 2017 was tough for the Group compared to the same period last year given the high levels of housing transactions brought forward in time as a result of the stamp duty changes and the EU referendum. Our income versus the first six months of 2016 is down 10% and our adjusted EBITDA down 26%.


Oh dear


There is a cold wind blowing but you purps have not felt it yet

[rackers1] 26/7/2017 22:43

Looks pretty easy to most other people.It's in an uptrend.Granted, nothing lasts forever, but why fight it?

[andy] 26/7/2017 21:45

maffs,

Ok good trading, do you monitor any special website to check for institutional accumulation?


PURP has a habit of looking like it's retracing, only to shoot up to a new high, hard to make put the next direction

[maffs1] 26/7/2017 20:18

Andy,

I'm not a long term buy and hold guy...I try to spot institutional accumulation and ride on their coat tails. Occasionally I have strong conviction buys but usually I'm looking for a quick 15-30%. I've had two already this year with PURP and now in at 443p hopefully for a third :-)

Macro stuff is fairly irrelevant to me.

[andy] 26/7/2017 17:18

maffs,

I think if the housing market stays reasonably bouyant there's room for PURP to accumulate market share, but if it declines and gets sticky, the pay upfront model may not work so well.

There are signs that the US and Australian property markets are slowing, as well as London, but not significantly at this stage. Prices look inflated all over. If prices continue to rise a whole generation of people are going to be locked out of owning property forever.

It's what happens next that will be interesting, US interest rate rises could well be on hold now, which is good for property, and if so, less chance the UK will raise rates too IMO.

[rogthepodge] 26/7/2017 15:51

buywell326 Jul '17 - 14:17 - 1311 of 1315 0 1
maffs1 well done

One does not get to make money financed by other bigger players throwing their cash at it

au contraire

that is exactly how one gets to make money! LOL

[maffs1] 26/7/2017 15:25

I think its too early to know if PURP is worth its market cap. If it takes control of UK estate agency and makes inroads into Australia and the US, then it may well. On the other hand, if it fails then the price will come tumbling down. The truth is we don't know.

But what we do know is that the institutions think it has a chance and are paying to be on board (or perhaps so they are not not onboard!). As long as they want to accumulate, the price will keep going up!

[buywell3] 26/7/2017 14:30

Have you read the news today about Provident Financial ?

[rackers1] 26/7/2017 14:28

such a nice charming human being arent you wabbit.
you just cant help yourself.
hows yer short coming along lol