Shares in OnTheMarket rose above the price they were initially offered to the stock market for only the second time yesterday, as they hit a new high.
They started the day at 158p but picked up to hit 173p at lunchtime and finished the day almost 9% up at 169p.
This was higher than the 165p offered at launch on AIM on February 9, although they ended that day at 148p and subsequently sank to a low of 111p in early April.
Yesterday’s price is the highest since February 22, when they hit 168.1p.
The company had originally hoped to achieve a market capitalisation of between £200m and £250m when it launched.
However, it raised just £30m of its £50m target ahead of flotation.
At the end of its first day of trading, the market capitalisation stood at £89.6m. Yesterday, at close, it stood at £102.3m.
There appears to be no reason for OnTheMarket’s surge in share price.
ZPG’s share price did not move yesterday, despite issuing strong trading results, because the price now simply reflects the bid offer, and Rightmove shares rose just 0.6%.
There is very good reason why the SP has moved_ the huge revenue stream up for grabs .The market recognising OTMP only have to step up a few platforms to get a major chunk Maybe banking on the fact that some agents might vote with their feet as Zoopla heading across the pond to be farmed by US investors
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As I’ve said all along, the Onthemarket share price is ridiculously cheap compared to Rightmove.
Having now invested in a few shares (in addition to my gold member shares) I expect to make a decent capital gain by years end, and in the process make back all the fees that’s been extorted out of me over the last 8 or so years by the duopoly.
I will then assess the portal market again at the start of next year which is usually the point at which my Rightmove fee increase letter comes through the door.
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Aren,t you confident enough today to throw your lot in with OTMP?
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Not yet.
I’ve already cut back with RM by recently dropping all the add ons which has saved me around £900 per month.
And we’ve not been with Zoopla for over 3 years now.
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I’m buying up as much as I can afford. Based on ZPG and to a lesser extent Rightmove, which we know have other revenue streams, OTM is massively undervalued.
And still some agents don’t get it…zzzzzz
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I wonder if any readers have heard of the Ouroboros, a mythical serpent which survives by devouring its own tail?
An apt metaphor, in my view, for agents who continue to feed a publicly listed company that can only survive by feeding off its own agents.
Of course, it could dilute its focus on its members, like ZPG has done, enriching its backers but making it less relevant to the requirements of the people whose needs it was established to serve…
By all means have your own personal investment portfolio, but agents investing in OTM is, to use another metaphor, like Turkeys voting for Christmas. It is against your own self interest.
I predict that one day soon, free incentives at Onthemarket will end, ARPA will increase and the short term gain will make way for the long term pain, just like it did with Rightmove and ZPG.
The problem with all of these companies?
1) They are beholden to the vicissitudes of the market and external shareholders
2) They were never designed to be member run and owned businesses.
The solution?
PropertyMutual.
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Oh it was so good until the end!
I was like, yes this man gets it! – Only to then find out its an advert in disguise.
Oh well!
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Thank you, Smile Please. This man got it a long time ago which is why I launched PropertyMutual in 2014. I was outshouted by my noisy neighbours but still think it is reasonable to point out these issues and inconsistencies.
And by the way, has PIE not been advertising OTM, RM and ZPG for years? Why not PropertyMutual? It is because I don’t shout loud enough?
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Good luck to you, i mean it.
I am just disappointed as sounded like an intelligent agent other than a sales post.
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I agree that the shares look cheap. This is probably explained by the lack of demand from institutional investors.
The current moves up/down are not a real indication of interest to OTM shares as the volume of transactions is very very low. For example, yesterday the share price moved up by 9% on the back of the total volume of £206,000. It is very illiquid.
How many of new signed up agents actually pay for listing their properties?
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Shares look cheap?
Look expensive to me, the only way they have grown their ‘customer base’ is by giving the product away for free. It has zero USP’s and when they start trying to charge for it they will leave.
No benefit to the home mover, no benefit to the agent (apart from it is free) – And the sensible agents will want to see it die as otherwise they create a new RM looking to squeeze every last penny out of them.
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“It has zero USP’s”.
It has “new and exclusive” which is a great USP that no other portal has.
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Its a silly USP.
Hi Mr & Mrs Seller, i know you want the best price for your property but i am going to restrict marketing on it for the first couple of days so it benefits the portal.
Lets say you get a full asking price offer the same day, is the seller not going to say “Well hang on a min, not even been on rightmove yet, let it go on that and see what happens, you have probably underpriced it”
Its not a USP its a silly marketing ploy which i do not know a single agent is using.
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You sound like the type of guy that has to employ people to do valuations as you probably havnt got a clue how to do it yourself as if you did then you would know how to sell new and exclusive to your clients.
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Ha ha,
You really have no idea!
You are not even an estate agent. It’s blindingly obvious from your postings.
Guessing a rep for OTM, make the most of hitting target signing up agents for free.
When they make you redundant in a year or two’s time, i look forward to your postings under a new name when you are in your next employed role saying its the best thing since sliced bread until again you have to move on.
The sales industry is littered with people like you. Purplebricks reps, OTM reps, you all say its amazing until reality hits that you do not make target or your earnings are pitifully low and move on.
I will go to bed tonight as i do every night happy knowing i am my own boss, and i have a sound viable business. You will go home think about what i have said try to convince yourself i am wrong but be frustrated i have called it right.
I never post emotion just fact but for you and the OTM fan boys i make an exception as its a disgrace what OTM have done.
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You let yourself get wound up fairly easily there smile please !!!
Now I’ll get back to selling properties and I’ll let you get back to being the paranoid money man who employs people to do the jobs that he can’t do himself.
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Have to agree with smile please here. “New & exclusive” isn’t a USP. If vendors know about it, it will make them furious. This is not any different from “one other portal rule” . If you need real USPs don’t go any further. Ask your customers what they want. Are they happy to leave Rightmove or Zoopla? Are they happy for you to limit the marketing of their properties to make you rich? Due to behaviour like this our industry has bad reputation. Just sad!
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if you’e saying that putting a clients property at the top of the listings on OTM through “new and exclusive” is not a USP then by the same token a featured listing on rightmove can also not be called a USP.
They are both USP’s.
Hey wardy where are You?
It was you that first suggested new and exclusive some 3 and half years ago on pie?
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new and exclusive works very well for me.
Savills and S&P both use it now as a matter of course.
Looks like you’re not smiling anymore.
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Rightmove has 100m+ visits a month and they don’t stop your property from being advertised in other places…
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And neither does Onthemarket.
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OTM is a cheap entry opportunity for a big international player. On that basis its worth a punt.
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