Purplebricks Share Discussion Threads

[elcapital2017] 14/8/2017 10:57

not for another pound or so

[ltcm1] 14/8/2017 10:53

Take profits now Elcap???

[pediment] 14/8/2017 09:47

Another technical bounce coming, same as Friday.

[elcapital2017] 14/8/2017 08:13

The Sunday Times made uncomfortable reading for Purplebricks yesterday as the newspaper raised more questions about the number of homes the hybrid agency actually completes on - and it recommended that investors should consider selling their shares.

Business columnist John Collingridge questions why Purplebricks resists setting out precise completed sales figures, and in the absence of exact ones from the agency he attempts his own calculation.

“Take its revenue oif £43.2m in the UK last year. Based on an average fee of £1,035 per customer that’s 41,739 instructions. [Purplebricks] claims to sell 83 per cent of these homes, which implies it sold 34,643 properties last year” he says.

Collingridge then cites the agency claiming the total value of the property it sold was £5.8 billion in the year ending April 2017.

“If it sold 34,643 homes for a total of £5.8 billion, that’s an average house price of £167,400 - 22 per cent below the UK average and well short of the average £240,000 Purplebricks says it sells for.

“Fast forward to June and it was apparently selling a property every nine minutes 24/7 - that’s 58,400 a year. Countrywide, Britain’s biggest estate agent with 4.9 per cent share of the market, only sold 61,314 last year” he adds.


Collingridge then asks whether customers will “continue to flock” when they read the small print of Purplebricks’ contracts which “contains nasty surprises.” He then goes through some of the additional charges that can be levied for non-basic services and refers to the controversial deferred payment scheme involving merchant bank Close Brothers - the subject of BBC investigations in recent weeks.

The column then notes that Purplebricks’ lettings director Richard Jacques sold 60,000 shares recently - elsewhere in the Sunday Times, it reminds us that this sale was shortly before the BBC programmes and a temporary seven per cent share drop for the agency, although Purplebricks is quoted in the paper as saying Jacques knew nothing of the upcoming investigations.

Collingridge then concludes his article by saying: “Some staff have begun to reduce their stakes ... Add a slowing housing market to the equation and maybe they’ve got the right idea. Sell.”

www.estateagenttoday.co.uk/breaking-news/2017/8/sell-purplebricks-shares-urges-writer-as-sales-data-mystery-remains

[elcapital2017] 14/8/2017 07:56

...but Zoopla is much better as it owns Prime Location too...so much for firstmover advatnage

[puzzler2] 13/8/2017 22:16

PURP is often compared with RMV, on the basis that both have exploited, or in PURP's case is in the process of exploiting, first mover advantage. Let's compare the fundamentals i.e. the financials. RMV is tremendously successful, reporting a post-tax profit last year of £129M, with broker concensus taking this to £149M for the current year. It is valued on a fairly full forward P/E of 25.8. Applying that same forward P/E to PURP at its valuation of £1.2BN, that equates to a profit of £47M. However, that £47M is more that PURP's last reported annual turnover, its last year preliminary result is an after tax loss of £3M and arguably, it hasn't yet achieved first mover advantage. Some serious hope value in the share price imo.

[ltcm1] 13/8/2017 21:43

Good stuff boofay.

There is also the issue of their (I believe) expensive conveyencing service, which has to be used if the seller doesn't pay upfront. I can see this being ruled anti competitive somewhere down the line. Also what if the conveyencers are not of sufficient quality?

While I am sceptical of the concept, that is not the same thing as shorting the share. All this info is well known so the ST article can be seen as just market noise.

Woodford owns 27%. Guess there is nothing to stop him topping up to the 29% should it suit his purpose. While I like charts, I wonder if they are applicable in this situation. I just feel it is a bear trap and after they flush everyone out the downside could be limited, on the basis that nothing has changed fundamentally about Purp.

GLA.

[cheshire pete] 13/8/2017 19:41

Hi Pediment,
'A thing of beauty', last time I heard this in a technical sense was in relation to the binomial theorem and mathematicians weeping tears of joy.

[boofay] 13/8/2017 18:18

..purplebricks high profile will hurt them over time..sellers are a very fickle bunch. As the reviews are starting to show.

[puzzler2] 13/8/2017 17:35

Herewith link to article I read and summarised VERY briefly:

hxxps://www.thetimes.co.uk/article/estate-agents-purple-haze-zqw8n0q9s?shareToken=9285ca2763310f6ffa2b92d39c7c2ec8

[discodave4] 13/8/2017 17:30

Thanks pediment.

[pediment] 13/8/2017 17:03

boofay, I don't know, that Greek fellow's record isn't that good, lol.

[boofay] 13/8/2017 16:41

easy property signing up existing agents so they can have a second income and a large network. i.e easy property supply the brand, the agents take the costs = genuine low cost model...

[pugugly] 13/8/2017 16:26

Could this be due to crash and burn ? Could Woodford end up with egg on face again?

Anyone any experience of so called competitor

About 16,400,000 results (0.46 seconds)
Search Results
Sell your house, flat or property online the easy way - easyProperty ...

Sell your home with easyProperty, the online estate agent, and save thousands on fees. Compare our home selling packages and choose the right one for you.
Letting
Letting property should be simple, flexible and affordable. We ...

Subscribe
Create a new account with easyProperty and start listing ...
Property Search
Residential sales; Residential lettings. Location. Search radius ...

What's in our easy packs ...
WHAT'S IN OUR EASY PACKS & HOW DO THEY WORK ...
Selling
Compare our home selling packages and choose the right ...

Lettings Products
The cost-effective way to let your property. We'll get you on the ...
More results from easyproperty.com »

[andy] 13/8/2017 16:22

pediment,

Yes some interesting comments in the ST today.

[pediment] 13/8/2017 16:20

Sunday Times, DD

[discodave4] 13/8/2017 16:19

PuzzlerCan you post up a link please.The FT article I read doesn't imply what you have posted, so guess you are referring to another article?hTTps://www.ft.com/content/c28c45ac-7ddf-11e7-ab01-a13271d1ee9cNot a bull or a bear!DD

[boofay] 13/8/2017 15:26

Oh and they upsell solictors and mortgages which are 50% (not official) more then local ones...good for the customer??? Watchdog thankfully sniffing around now due to inept govt. regualtion of the 'online' industry which basically lies,,gets a hand slap,,does it again...

[andy] 13/8/2017 14:46

puzzler,

Thanks, I just bought a copy.

[puzzler2] 13/8/2017 14:26

Times article - gist of it: suggests numbers disclosed don't make sense and customers can expect (but probably don't anticipate) extra costs. Revenue last year £43m, company valued at £1.3BN - maybe the directors were right to sell.

[pediment] 13/8/2017 14:09

Andy, gist is sell

[andy] 13/8/2017 12:37

russell,

What was the gist of the articles please?

[russell250] 13/8/2017 12:23

I read two separate articles in times - not great

any thoughts on tomorrows markets reaction

[pediment] 13/8/2017 11:01

Comments anyone...crunch point


pediment - 11 Aug 2017 - 09:36:41 - 1713 of 1739
I agree although it actually dipped quite a lot below the support on my chart, suggests a resistance now at 443.00, a dithering about to let the 15m RSI off the floor, looking at 30 or 45 before a further fall, gives the hourly a chance to recover a little too.