Shares in Purplebricks take a tumble despite upbeat trading statement

Shares in Purplebricks tumbled over 7% yesterday, finishing at 375p, down 28.5p.

A long way down from their July high of 513p, it was not obvious what has spooked investors.

On Monday it issued a brief three-line trading update saying it was on track to perform in line with expectations.

On the same day, Old Mutual raised its stake in Purplebricks to hold a 12.59% interest – up from a stake of 11.1%.

Other estate agents did better on the stock market yesterday.

Countrywide shares yesterday edged up slightly to 128p, while LSL shares were also marginally up, and Foxtons were down slightly to 73.50p.

x

Email the story to a friend



11 Comments

  1. dompritch134

    The PB share ticker is back, perhaps it is just coincidental that it is only a story after a fall?

     

    Report
    1. Property Pundit

      If you’d read this site for long enough, you would know noticeable share price movements UP or DOWN have been covered on here.

      Report
    2. P-Daddy

      They are listed on AIM, notorious for its fluctuations as the majority are early stage companies. However in the last week the sp has fallen from 417-358….not insignificant. I have just looked at the tea leaves and I reckon 1 reason is that 4 funds have taken short positions against them in the same time frame……..

      Report
  2. PeeWee

    Ouch.

    Report
  3. Woodentop

    Maybe, just maybe that after all these years it still fails to pay a dividend to its investors, they have woken up to it not being that good an investment and a very long way off ever doing so. It may have grown but is still a small percentage of the market and uses collective figures for the UK, but locally has not taken over anywhere. There are also many other on-liners and none of them have faired any better.

    Report
  4. cyberduck46

    You never know for sure why a share price moves but PurpleBricks share price is very volatile because of the small float. The share prices of the builders suffered yesterday after a trading update by Persimmon. Today Redrow has started down 5% after a trading update.

     

    Looking at the listings for PurpleBricks though they look set at present for a year on year increase of about 100% on last November which fits in with their guidance first given back in June. This is based on information provided to me for last November though rather than my own data.

    Report
    1. GPL

      …..and succinctly, there we have it cyberduck, in your own words.

      ”Looking at the listings for PurpleBricks though they look set at present for a year on year increase of about 100% on last November which fits in with their guidance first given back in June. ”

      Listings… not Sales ….just Listings ….from a company that has a business model simply built around listings. Take the homesellers money upfront, job done, move on.

      Contrast with a real Estate Agent… earns, earns, earns… its income on actual sales!

      Succintly, the difference..

      Purplebricks – a slot machine, win or lose you pay!

      A real Estate Agent you only pay when you win!

      Share price? who cares, it needs to move up n’ down because there are those that feed off that simple movement.

      I look forward to the announcement from Purplebricks of actual verifiable sales versus listings – that’s sales where homeseller is paid by homebuyer, moved out, new owner moved in…. not some purple interpretation of a sale.

      and a jolly good morning to you cyberduck.

      Report
      1. cyberduck46

        Yes we all know the difference between the models, the article was about the share price movement and a possible reason.

         

        Good morning to you too GPL. Did you just get out of the wrong side of bed?

         

        If I’m not mistaken we will soon have an idea of conversion rates for all the top agents. Hopefully the data will be properly interpreted but I’m not holding my breath. At present we don’t have conversion percentages and if PurpleBricks published their sales figures then they would be the only one of them that did provide conversion numbers as their revenue is proportional to the number of listings.

        Report
        1. davehedgehog

          The difference is Estate Agents only get paid on what they convert, PB get paid regardless.

           

          Report
  5. Gotcha

    Usual PIE in the sky story. I’m no fan of Purplebricks by any means but pointless stories like this make a mockery of PIE. What the story fails to tell you is that over the previous 10 days PB had an 18% rise in their share price and is still up over 5% on where it was only 10 days ago. If you are going to report on a story do your research and report in an unbiased manner please, at least that way you may come across as more credible

    Report
  6. P-Daddy

    They are listed on AIM, notorious for its fluctuations as the majority are early stage companies. However in the last week the sp has fallen from 417-358….not insignificant. I have just looked at the tea leaves and I reckon 1 reason is that 4 funds have taken short positions against them in the same time frame……..

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.