Property shares once again fell heavily yesterday amid the continuing market mayhem which saw £160bn wiped off the value of shares in the biggest falls since October 1987. Amid the carnage, the FCA stepped in this morning to temporarily ban short selling.
Countrywide shares plunged yesterday over 24% to 175p at the close, a drop of 55p, having earlier hit a low of 165p.
LSL, mulling a takeover of Countrywide, saw its shares fall more than 7% to 265p, having at one point yesterday seen a low of 251p.
Also among the heavy fallers was Purplebricks, down 15% to a record low of 53.5p – almost half its launch price of £1 when it first listed on the stock exchange in late 2015.
At peak in July 2017, the stock was changing hands at almost 518p.
Foxtons shares tumbled almost 6% to 59.5p.
Even Savills, which yesterday reported a rise in both profits and revenue for last year, was rewarded by an almost 12% fall in its share price.
Down at 875.5p in the afternoon, they finished the day at 882p, a drop of 116.5p.
The Property Franchise Group share price tumbled 6.7% to 181p, and Belvoir shares sunk 11% to 129p.
Rightmove was another big faller, with almost 8% wiped off its share price, ending at 515.8p, down 43.8p.
OnTheMarket shares fell 5% to 65p – exactly £1 lower than when they were first offered on the stock exchange in February 2018, and their lowest price yet.
- This morning, OTM announced to the stock market that there has been an agreed out of court settlement with Gasgoigne Halman and Connells. The statement gave no further details, adding: “The agreement, the terms of which are confidential, ends all litigation proceedings between the parties.”
Comments (48)
PB is practically in “junk stock” territory
Which in all fairness is where it should have started.
It’s a sobering thought in a challenging property market ……all those trapped Purplebricks Souls having paid upfront, struck, lifeless, in a relationship with Purplebricks, unsold, and if they have got sucked into PB Extras then a further bill to pay to escape the clutches of Purplebricks.
Meanwhile, stepping away from the “Virtual Make Believe Purplebricks World of Pay Upfront Property Listing” …….by & large, real Estate Agents work away regardless of how challenging the property market is ………on a No-Sale/No-Fee basis.
The Bells of Discontent will be in a meltdown at Purplebricks, between the exodus of staff, those carrying the shortfall, empty employer promises ……..and the growing sound of clients trapped in their “Paid Upfront for Success – Going Nowhere” Contract.
I certainly won’t be digging PB Clients (jumping ship) out of their wrong decision. I’ll look after those clients who made the right choice 1st-time – Chose a Real Estate Agent to Sell their Home ……and only pay for Success!
Purplebricks = Purplesucks. Not even if their service was Free, would I dream of trusting my biggest financial asset to “GiveusyirMoneyNowBrigade!”.
50 pence says it all really…….
So just had the stats through for February for PURP:
5392 Listings for FEB vs. 6518 in 2019
On track for 5603 in March vs. 6699 in 2019 (Projected from the 2169 they are on month to date)
Considerably down on instructions again.
therealpropertyexpert “5392 Listings for FEB vs. 6518 in 2019”
I have them at sub 4900 for this February (source: Zoopla) – and a full thousand below your 2018 figure.
I would also suggest your March 2018 figure to be way off mark – according to my reckonings, it should be some 1180 less than your quoted figure of 6699.
One thing we do agree on, regardless of the numbers involved – listings are down.
WAAAAY down.
I think we should play this game every month – are you up for it? I’ll start a thread in ‘The Arena’ if you like?
Lets blame coronavirus.
All markets showing modest increases at close of play today.
FTSE 100 up 2.46%
Purple Bricks down 3.36% closing at 52.30p
Countrywide down 5.91% closing at 162.90p
LSL down 6.79% closing at 247.00p
On The Market no change closing at 60.00p
Rightmove up 4.19% closing at 535.40p
Make of that what you will!
PB actually closed at 51.7p. Just for the avoidance of doubt, that’s
FIFTY.
ONE.
POINT.
SEVEN.
PENCE.
Has a certain ring to it, don’t you think…
Pence? – Yes it does. PurplePence
It’s quite an achievement by PurplePence – barrow/shed/warehouse loads of investor money piled high to get to £5+ per share, then successfully setting fire to it, spraying more millions on the blazing pile
Finally, they manage to extinguish the flaming pile of millions and when the acrid filthy financial smoke clears – we see a simmering pile of ashes valued at just over 50pence per share
Apparently some 50 pence coins are worth more on eBay – more than PurplePence it seems
If you live in a cave in nowhere land then do by all means invest your grains of gruel in PurplePence – just don’t use real money because they reduce it very quickly to ashes
Well, for what it’s worth, I am a career agent over 3 decades in multiple locations and a business owner for over 20 of those 30, office junior up through all phases, I bow to nobody in knowledge, others may do it differently because we are different mammals but I ( now we ) are market leaders in terms of the only thing that matters which is results.
R4 interests me and we will look/trial it, the negativity from other posters is just blehh until that event, but I do know that if the internet disappeared overnight with all it’s widgets those negative posters are the most vulnerable and we would kick their ar5re to an even greater degree.
I look forward to you calling
What isn’t mentioned in the article above – or by any other commentator in the comments – is that it appears Rightmove has bought some 1,965,000 of its’ own shares over the last week, at figures ranging from 604p to 505p and all compass points between.
Apparently it’s been a daily occurrence since around 26 February according to the RNS updates.
And it seems to be a regular thing, looking back on the timeline – the only month it didn’t take place last year was apparently February.
But at the minute they are buying at nearly 20% discount to their pre-Christmas shopping – and almost what they were snaffling them up for a year ago.
Interesting things, share dealings.
It’s what happens when you have a company so flush with cash yet with zero growth prospects and absolutely no new ideas. They could give the money back via bigger dividends but then, when these drop, so does the City’s love for them.
RM spend approx. £100 million p.a. buying back their own shares.
The effect, for shareholders, is an increase in EPS/Share price.
You would think they might invest more in their product/service offering – £100 million is a frightening amount – they could do so much with that.
From the latest Annual Report – “Since the introduction of the new parent company in January 2008, the equivalent of 427,638,072 shares have been purchased in total….”
“RM spend approx. £100 million p.a. buying back their own shares.”
From the EYE article earlier this month:
“Operating profits were £213.7m, up from £198.6m.”
They have plenty of money to spend on their own shares, Ostrich17…
…but the money they spend is YOUR money… ric’s money… Woodentop’s money… GPLs money… Smile Please’s money…
…and the money of 0000s of others.
True PeeBee ….yet my crumb of personal comfort is my 15 years with my current company, declining RM’s extra products …..whilst my competitors feverishly foamed at their mouths, voraciously signing up for every New Product RM pitched. Yet I declined, every product, every year ……almost incinerating my personal friendship with my close friend – the RM Scotland Rep.
So, have I supported financially the Portal Dictator that is RM ……Yes, I have. Yet I did what I could personally, NOT to accelerate their growth …….whilst my competitors literally financed their own fate by reinforcing the defences that RM now relies on.
As an industry I have no issue with competition, however we fund RM who play their unique business game of division in order to conquer/dominate/crush.
You know I supported, and was amongst the very first to support OTM V1 ……and yet we are amidst the ashes of OTM V2, in reality it’s simply Portal No 2. Whether OTM V3 has the desire/strategy/integrity to re-position itself as the only Agents Portal ……..time will tell. Their next move signals their intention to do so ……or to die.
I read about RM Leavers or those due to leave on PIE, it would be enlightening to see those Leavers have their “Spartacus” moment and announce who they actually are ……but that won’t happen as they fear the Backstabbing Competition.
It’s sad that Our Industry has allowed itself to be manipulated from a healthy competitive environment to an unhealthy divisive environment …….all fuelled by Rightmove …….and we pay Rightmove to fuel that division, to divide/conquer/dominate us.
As clients choose me/my company over others, so in the UK Portal Provider Arena, there remains a vast chasm of an opportunity for a true Agents Portal, which can undoubtedly serve both the consumer/agent, however NOT exploit Agents. That portal would surely attract virtually all agents from within Our Industry.
Rightmove needs to be crushed as it is crushing Our Industry. The wealthiest agents may well think they can slice up the property cake in bigger slices as other agents are eliminated. On the surface, they happily can suck up to RM and absorb those annual increases thinking their pie slice will get bigger? There are a number of gaping flaws in that master plan however that’s up to them to work out.
Whatever, Agents like me who read the script properly 10/15/20 years ago can still rightfully feel that they took a stance against RM, one which they could manage …….whilst others just ploughed on fuelling the rise of RM.
Amidst the chaos of current times ……..there is a howling opportunity for OTM to rise to the RM challenge ……..whether they have the will/determination/strategy/desire/guts/interest to deliver the decisive blow to accelerate RM’s demise? ……..we’ll see.
Now, it’s time that I exited the stage and left the actors to finish their performance. Then we can applaud or head quickly & quietly for the exit.
OTM has an opportunity surely. With someone new at the helm maybe OTM can use some of the cash Connells Mr Livesy is kindly donating(clearly he doesn’t understand the law of Contract) and run a new advert !
Seriously OTM still is in the game-it needs to come clean and keep clean with the agent population,do the right thing short term and gain the trust back.
GPL
Your post above is one of the best I have ever read here on EYE.
I sincerely hope you appreciate that my ‘naming names’ was not a dig at you and the others mentioned – I have way too much respect for you and the others for that – but the point had to be made that Rightmove’s practices are not simply affecting faceless corporates – quite the reverse in fact. In the main it is real people, like you and the others mentioned, running real businesses that serve their communities tirelessly in what is often a thankless job that are financing the ‘Gin and Jaguar’ lifestyle that Rightmove is enjoying spending their monies.
I have made my thoughts clear over the years both here and at our esteemed Landlady’s old pub so I’m not going to go over old ground. But what is extremely interesting is how my viewpoint has changed over the years with my various job roles both in the Residential and the New Homes sectors of the industry. Definitely a case of ‘poacher-***-gamekeeper!
The fact that I left the coalface of Agency – and a job and colleagues I loved dearly – to work with Robert to offer an alternative to Agents should speak its’ own volumes on the subject.
I’m with you guys every step of the way, and hope that I can, in my own way, make a difference – which is all I have ever tried to do for the industry, in whichever role I have played within it.
Should I have inadvertently offended any of those I ‘named’, then I unreservedly apologise, for that was not my intention.
How many other companies are there that buy back and cancel such a large amount of their own shares on such a regular basis? If anyone needed proof of vast overcharging by these shysters, here it is.
They’ve been doing it for years, to reap the associated benefits. They are certainly skilled in deriving income from every opportunity. Currently sucking up New Homes Advertisers on Premium Rates to make up the shortfall from those Agents walking away.
If Oaktree ares still a major holder-could they aquire the lot at a price and break it up or sort it out-obvioulsy installing someone in who knows how to sell houses and motivate a team ?
Oaktree specialises in buying distressed debt that was what what heralded their arrival here over a decade ago
In other words they can gain control of the company by buying the debt direct from the banks say £75m This would wipeout shareholder value
They can then introduce fresh BODS and start the cycle again .Rinse and repeat
Their book loss of 18% would be a small price to pay in the whole scheme of things
This is no different to the whole of the stock market worldwide…. the article implies the result is the weakness of the mentioned companies but this has happened to every single listed company in the world so nothing unusual about this in terms of who they are…..just look at IAG or EasyJet etc etc
Yes Falling tide,lowers all boats and all that .However it couldn’t have happened at a worse time for CWD as they are particularly weak and vulnerable
They have the thorny problem of £90m+ debt to contend with where they are in breach of a recently amended credit facility
This Awards Season sees The Bruce Brothers receive the GOOJ Special Award for their timely exit from Purplebricks. The GOOJ Award (Get Out Of Jail) replaces the JITNOT Award (Just In The Nick Of Time) as that was retired after Alison Platt wouldn’t hand it back
I see those fleeing Purplebricks shares this morning, Friday 13th!
Whilst other adventurous souls buy some PB shares – they will receive their FCBPFTM Awards in the post (Fools CAN Be Parted From Their Money)
HAPPY Friday 13th Purplebrickers
Talking of which whilst Bricks share price hit new lows yesterday it was a winning day for our Sporting Ken.Whilst the racing action primarily centred at the foot of Clee Hill , Sporting Ken landed the odds in the first race in good style at the more mundane Chelmsford as his Greek Kodiac got his nose in front
Sporting of course winning big style last year as he quietly slipped out his shares leaving the ship in choppy waters.
Thank you very much and Good night . Giddyup
Which brave person was buying CWD at 165p? Pls own up and I take my hat off to you.
A few commentators on social media talking about buying the dip on property stocks but how many have the guts to do it?
I don’t yet – far too fearful. Best of luck to you all.
Sad state of affairs.
Its been a suicide in instalments .CWD are now in the hands of the bankers. The renewed credit facility agreed with the bank on the strength of the sale to Streaky now in tatters .
Shareholders at LSL would surely now object to a merger unless a giveaway Every risk now its”Back to Basics” ,The founding fathers Oaktree who still hold 18% of the company possibly only the winner here buying the £90m debt off the bank with a haircut ,take it back and the whole merry dance starts again .
Shareholders rinsed .
You would have thought some of those running the brands would have risen against the BODS by now .How have they sat back and let this set of BODS destroy the company.
It’s an absolute pig’s ear
Completely agree Hillofwad71
A happy ship in the early 90’s when building this multi brand business. BODS then had vision, BODS now cling to lifeboats. Sad to see its demise.
Blah blah BODS, blah blah BODS
Purplebricks – £5.18 High to £0.53 and its still overpriced
Purplebricks backing Olympic winners and yet anyone backing Purplebricks is an Olympic loser – feel the irony
Deep breath Purplebricks – suck up those millions you are burning on tv ads
Proving what professional estate agents knew all along – Purplebricks is no more than a virtual marketing machine. Justice comes to those who wait
let me pick out this
“Rightmove was another big faller, with almost 8% wiped off its share price, ending at 515.8p, down 43.8p.”
it isn’t just down 8%
When I took the cloak if invisibility off r4p a month ago the share price was over £7 Rightmove is down 27% not just 8%
For sure there is market jitters in there but where there was a duopoly +1 there is now an innovative challenger in the mix with tech that is 2 tech generations ahead of the G3 portals.
Whether I succeed or not will be determined by agents but what is certain is that the incumbents are now facing the challenge they never got from OTM – someone doing something different.
Robert, are you talking about the Rummage 4 site as I still have no idea what it is, what it does and when it’s launching as since I’ve been looking at this site you’ve kept saying it’s a game changer and it’s coming soon but still nothing concrete, interested….
The coming soon site is there while we get rid of a few things that come through in data feeds, the contact form is there for anyone who wants me to run through what isn’t so much a game changer as a putting things back to how they should be’er
Mr. May, you are speaking in riddles. Where can I read up on exactly what r4p provides and guarantees?
>When I took the cloak if invisibility off r4p a month ago
Please point me to the clear description of what r4p guarantees to its customers. I am extremely interested in how long it takes to get an advert live in Google and whether it is guaranteed. With ppc it is of course instant and guaranteed and costs pennies per click.
Hi Robert
Very well observed, however the FTSE 100 over the same period is down a smidge over 30% so you could also argue that the RM share price has done well to buck that by being down 25% (686p 13/02 to 515p 12/02). Had your great reveal truly had any effect then you would think they would have struggled more but why let the whole facts get in the way of an agenda being pushed.
Fortunately for me I have been careful to document with impartial observers several years of agenda. The fact is when journalists in the grown up papers start using phrases and the lexicon of that agenda the message is starting to get through.
Rightmove is a great company but its technology is now dated and behind the curve. It cannot innovate onto the modern stuff without risking its 78% profit margin.
Because the duopoly +1 is now broken everyone has got to concentrate on their own game, they have to innovate or put what they have at risk.
I do have an agenda; I have built something better, faster and cheaper than what has been available to agents because of artificially restricted competition. Only time will tell whether Rightmove share price will recover or whether the exodus that has begun can be halted.
Whatever happens, agenda or not the fact is and cannot be changed a £1.18b came off the market cap of Rightmove in the 1st month after my launch. whereas the value of rummage4 got just a tiny bit stronger
> if it quotes like an aquatic avian it probably is an aquatic avian
“Whatever happens, agenda or not the fact is and cannot be changed a £1.18b came off the market cap of Rightmove”
To attribute any of that loss to anything other than a market crash is arrogant self congratulatory nonsense on your behalf.
perhaps
but so too is telling investors that the fall in agent numbers is because they’re small agents with little stock who’ve gone out of business
so too is confidently predicting raising ARPA to £2500
If leading a property search system requires me to be both arrogant and self congratualtory it seems I’m learning, though I fear I have a very long way to go to catch up.
I am not congratualting myself, I have very little to celebrate other than the achievement of seing some very shouty people put firmly in their place and to **** a snook at thoose who insist what I’m doing is impossible.
**** large male chicken
Well I came back to see if Mr. May had spent a second to point those interested to some written material on what r4p actually provides for its customers but clearly the agenda is self promotion but not to the extent of providing any concrete info. Now claiming he has had some huge effect on Rightmove’s business.
Perhaps Mr. May could let us know how many Agents have dropped Rightmove to move to R4?
If R4 were making great strides in this respect then why did Anthony Codling leave?
Anybody here actually use R4?
I think r4p is a bit like an imaginary friend. Just play along.
that actually isn’t correct, you are twisting what was actually said. that isn’t surprising as your agenda is to disparage what I do
Rightmove’s value is what it was because the Competition and Market authority allowed the DMGT portals, Primelocataion and Findaproperty to be acquired by ZPG in 2012
When OTM was launched to fight the Duopoly, the product was wrong and the OOPR put too many agents off joining. It didn’t work first time round and so there was a good chance it wouldn’t work 2nd time round.
The result was a duopoly +1 where there was no incentive to innovate, neither Rightmove or Zoopla have done anything significant in the past 12 years to modernise their products and there has been no control of rising subscription charges. Zoopla have been a comfortable #2 and OTM a comfortable #3, each charging well in excess of what a free market price would be.
Some agents are paying over the odds to be on 3 portals and that is down to there being no competition.
I do not need to tell you what I have done, you ARC and SLF will think it arrogant but I have documented elsewhere strategies of how the duopoly +1 could be broken, without harming OTM.
In every case those strategies have worked and because of that I can take credit for what I have achieved from people who respect me.
RE: Countrywide. Does that mean their shares that were worth 300p three years ago are now worth 1.7p?(!)
£1.75
That can’t be right.
They were trading around £3 several years ago, dropped to 7p and then the share consolidation took them to £3.60.
So if they’re £1.70 today that means the equivalent share has gone from £3 several years ago to roughly 3.3p today (factoring in the consolidation)
Bertie. In order to answer your question you need to rewind PRIOR to the recent share consolidation in December 2019 when magically their share price shot up from 7p to 360p overnight. Unfortunately not the same 300p as 3 years ago. At yesterday’s close of 162.9p a like for like comparison would be around 4p. Gulp.
Bertie. 1.7p?
Believe it or not it is now. You must have a crystal ball.