Shares in Purplebricks took a battering yesterday.
Starting the day at 382p, that was as good as it got.
At one stage in the mid afternoon, they went down to just under 354p before recovering somewhat to finish the day at 360.5p – a long way down from their high of 513p in late July, although still a more than handsome return for those early investors who got in at £1 less than two years ago.
Purplebricks has seen its shares go south all week after a 400p price tag on Monday.
It launched in America exactly a week ago and has since hit controversy, with Trustpilot reviews from UK reviewers going to its US site, where they were removed.
There has also been a high-profile contretemps with British review site allAgents, which first removed the Purplebricks account and then yesterday took down its explanation as to why it did so.
Allagents claims it has acted in response to the threat of legal action. Purplebricks has claimed that a large number of reviews on allAgents were fakes.
Countrywide also had another disappointing day on the stock market yesterday, with its share price sinking to just under 123p. During trading, they hit a new low of 121.75p.
Foxtons shares also fell to a new low of 71.75p.
Comments (32)
Warren Buffett is the most successful investor in the world, his Berkshire Hathaway investment company only invests in shares with proven earnings and a sustainable P/E ratio and as he always says if it doesn’t produce value for shareholders ( which means dividens not share price ) he wont touch it. I don’t see any value at the present time in PB just speculation on the hope of a profit one day in the future…….. I’m out 🙂
g4lvo17,
Warren Buffet on dividends http://www.businessinsider.com/warren-buffett-on-dividends-2013-3?IR=T
“A company’s management should first examine reinvestment possibilities offered by its current business – projects to become more efficient, expand territorially, extend and improve product lines or to otherwise widen the economic moat separating the company from its competitors.”
I draw your attention to “expand territorially”
Looking forward to the “news” about PurpleBricks’ share price tomorrow. Just to show impartiality 🙂
Or perhaps it will be a daily item or even better 24 hour coverage (well at least while the market is open).
After all PurpleBricks are the new O J Simpson for the property market.
Oh yes after a huge recovery today finishing at 394p I look forward to the article!!!!!!!
Not tomorrow – Monday.
We shall wait but I wouldn’t hold your breath!
The real tell on momentum will be the interim results next Friday, if they are inline with expectations there maybe a substantial bounce!
Is that a share tip Dom?
Just an perfectly rational observation, take it as you will!
What, no Cyberduck today?
El Burro, the share price is governed by supply & demand. There’s a small float so share price movement is very volatile. A small upturn in demand drives it significantly higher and a small downturn drives it significantly lower.
He is alive and well as evidenced on the LSE share chat Supportive of Trustpilot which of course he is entitled to be with a recent response to him !
Lets agree to disagree .Its like a scene from a pantomimeThe world and his wife have seen the whole reviews on the US site as invalid whilst it takes 7-10 days with their sophsticated procedures to find it out Trustpilot shouting “where” with the whole crowd shouting “They are Behind you”
It’s like Beetlejuice, say it 3 times…
It’s seems you can still fool people for so long but the end of the story never changes ‘the Emperor has no clothes’
No great fan of Bricks of course .The Trustpilot fiasco and the failure of both managements to deal with it quickly as soon as it was revealed at such an important time speaks volumes,Very poor
I think there is probably a large disconnect with the quality of the management and Brick’s cutting edge, disruptive image
The T/P fiasco has revealed that the paying client takes control of the rating even the power to remove reviews which they admit to be true to influence It brings the whole intefgity of the rating into question
Moving back to the motherlode .instructions are up to speed in the UK with the Hardman report so the market can have no gripe there Oz fairly pedestrian so benign Lettings best left unsaid
California will be the one to influence setiment and nothing yet has come back about momentum there mainly because of the trustpilot chaos
If some traction is being made its likely that the SP will shoot for the stars We shall see!
Fake News!
Where’s Donald Trump when we need him.
Finally the PB balloon has popped and investors will soon see, if it ain’t making money it aini’t worth the time or money to invest.
Sorry for PB?
Nope
Sorry for Countrywide, yep
Sorry for Foxtons Grudgingly, they may not be the most polite of individuals but they have succeeded where the likes of PB failed.
Sadly, anyone who thinks this is the beginning of the end for PB is mistaken – I too wish it was
their cash position is so strong that they have little to worry about
they trade off the back of a profession which has collapsed into black hole of public opinion – mostly due to a lack of proper regulation and licensing
The most vulnerable are 20 plus office outfits / all the way up to countrywide
good luck to those that cannot batten down the hatches – a storm is coming your way
…it is but that isn’t due to passive intermediary listing firms. Larger agencies with larger staff registers will suffer but the disruption model has not been tested in a slow or falling market.
The model has an Achilles heel that means a slow market is likely to do what the end of MIRAS did; clean out people and institutions who make the profession an industry.
Game, set and match Robert !!
And for those of you who think the world didn’t exist before the Interweb, MIRAS stood for Mortgage Interest Relief At Source.
Purple Bricks are like the “Ryanair” of the property sector, the difference with these cavaliers being the latter has made money.
So it’s surely not surprising that for different reasons both are coming under more and more scrutiny.
If P.B. repeat their UK tactics in the USA they will be eaten alive.
And as for C’Wide, are they heading for life support?
Um at least ryanair provides an aeroplane…pb is an estate agent with out wings.
But do Ryanair have a Pilot they can Trust;-)
This is the city beginning to realise that not is all as it seems with Purplebricks and Trustpilot
Purplebricks big PR stunt on being the most reviewed estate agent in the U.K. backfired big time when their lawyers threatened allAgents.
‘David and Goliath’ springs to mind here.
I heard this story has grown arms and legs with realtors in the USA.
Purplebricks may have to suspend their expansion until this all blows over .
The slide has nothing to do with the Allagents kerfuffle, this all began at the start of the school holidays when it wasn’t going to be wise to be holding stock that might bust any minute while you were glugging all inclusive Vodkka and Whiskay in da sun.
The apps that herd gullible investors into particular stocks held by high profile investors are great while it’s all on the up but given any sign of a ski slope decent the night sweats creep in, experience top trumps bravery, common sense takes over then there is mad rush for the door as panic sets in.
According to some keyboard traders it seems I don’t understand this stuff. They’re right I don’t. What I do know is that a business propped up by share trading has to be good enough, long enough to attract income investors as growth investors are all too easily spooked. Without long term income investors the money dries up all too quickly.
Yep all the clever moneyt has shorted their positions…woodford is holding it up with his massive share…so he will stand to lose £ millions when it goes pop…. problem is he has already made loads by having clever adverts…
Share price up 10% on the day at 392p, You were saying????????????????
Share price up another 1.4%!
Oh, but its 70 pence down at 322p since your post.
You were saying?????
And down another 20pence today at 302p.
What you saying now Dom?
The ‘PB’ mirage is evaporating as anyone who understands the industry expected. People are seeing that the model (estate agency lite) doesn’t do what it would have vendors believe it does. You can only perpetuate a myth for so long. Let’s not confuse a completely unrealistic and unsustainable share price with performance. As for CWD; it’s continuing demise is because of the incompetence of the senior management. Management that remains in place to continue running it into the ground. The management has no credibility (not to mention no ability) with anyone. Foxtons appear to be suffering the effects of the ‘London’ malaise but, as long as they don’t ‘knee jerk’, they will recover more readily than the other two organisations. It remains to be seen however what that recovery will look like in terms of revenue. It will be next April/May before any of the above can hope to see any improvement in their fortunes and this assumes an improvement in market conditions in January 18; in my opinion.
And it’s just coming into Duck hunting season in the US.
Ouch.
Down another 3% today. they seem to have a load on in L.A .already though..have they done a deal with a multi lister ??? seems like if the law says they can share property of others, they will have a field day with their propaganda advertising sharks.