A trade of £350,000 was made in Purplebricks on Friday, but cancelled less than an hour later.
The shares, which floated at £1 each on December 17, finished last week at 90.07p, meaning it has lost almost 10% of its value.
It was valued at flotation at £240m.
CEO Michael Bruce has been sanguine in interviews about the fall in the share price, and many firms were affected by large falls as the FTSE suffered a bad week.
Comments (5)
As I look now (2.20pm on Monday) the stock is down a further 3.44% at 87.39, a mere 0.39% away from a new low. The general FTSE is up, albeit slightly and other property firms are also up so dont go blaming China etc.
I think its starting to come home to roost (I hope
Deequealy
You are absolutely correct in that it simply doesn’t add up – but for different reasons to that which you state.
The unfortunate fact is that they don’t need to achieve 7.21% of successful transactions.
They takes their money regardless of outcome.
It’s how many listings they achieve that dictates their ‘income’.
NEW, PAID-FOR listings, that is…
I am still trying to come to terms with a valuation of £240,000,000. If you apply 20 times earnings to get to £240,000,000 it would require income of £48,000,000 which represents 71,280 listings at £665 each. HMRC is suggesting 1.2m housing transactions in 2015, deduct approximately 200,000 new builds and that leaves 1.0m transactions. Are Purplebricks really going to be able to get to 7.21% of all housing transactions in the UK in such a short space of time. That is nearly 10% more than the Countrywide group achieves in exchanges out of a network that must employ around 7-8,000 people. It doesn’t add up
55 pence to go before PB reach my prediction
My bloody 0000000000000000000000000 button sticks as well….. I feel their pain.