OnTheMarket share price sinks over 8% as volatility hits agents

OnTheMarket shares start trading today at 131p after an 8% stumble downwards yesterday.

At one point, they dipped to just 130p, with a market capitalisation of around £87m.

OTM was admitted to AIM last month with a market cap of some £100m with share prices opening at 165p.

The reasons behind yesterday’s fall are unclear but are not unusual in volatile times which this week have seen, for example, Purplebricks share prices fall around 8% in one day only to recover by the same amount the next.

 

 

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15 Comments

  1. MrLister

    The reasons behind yesterday’s fall are unclear.

    Er….it’s a pants portal and using it is a poor business proposition.

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    1. TheHybridAgent

      Brilliant.

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  2. Bless You

    Now would be a good time to offer it to countrywide and connells for free. After all thats how rightmove began life and then dopey independents joined it because their was no viable alternative until zoopla years later.

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    1. Bless You

      Until you get agents like me on it who put customers before share price you are dead in the water…oh and I still haven’t seen the plan on how u are hurting rightmove…. how long is it now 3 years?, 

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      1. Shaun77

        With respect, it would have hurt R & Z if agents like you had supported it rather than criticised from the side lines.

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        1. Bless You

          I did support it and realised after 6 months it was corrupt…2 years later I was proved right. Call my agent if u need any more advice on running a business.

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        2. Bless You

          Also…how many agents does onmarjet need to stop rightmove??. Only thing that can happen is u kill zoopla … It has been shown agents not got the balkzzz to leave rightmove….agents like u 

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  3. Typhoon

    18% annual increase from Rightmove will hurt the industry. RM is on a a trajectory  to single handedly destroy the high street agents if they’re allowed to keep going with their relentless, TOTALLY UNJUSTIFIABLE price hikes

     

    Their profit margin is some 78%(obscene) whilst the average agency profit has probably more than halved and today WILL LIKLEY BE IN SINGLE FIGURES.

    You don’t need to be an analyst or mathematics major to work out what the final outcome will be for agents if this is allowed to go on.

     

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    1. Beano200062

      ‘Allowed’ to go on? You mean ‘if agents continue to let this happen via their never ending in-fighting, and seeming happiness to bend over when Rightmove tells them to.

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  4. Property Paddy

    In the US they are talking about hikes in interest rates as they are here in the UK

    So if you invest say £1000 in shares with a zero dividend like OTM & PB or you put the money in to a deposit account with a small but potentially higher interest return then it becomes a risk assessment.

    Now because we have had really low interest rates these last few years many punters have taken much higher risks with their money and as a result we have seen some really odd share values, PB for example hitting £5 with no obvious sign of any dividend.

    So as interest rates go back up again punters will not want to risk quite so much.

    PB is hovering around £3 if drops to £2.50 by Easter that will be a 50%+ drop overall but since January this year that’s still a 40% drop to just under £3.

    So punters the questions are

    A: How many new properties are coming to market in 2018?

    B: How high are interest rates going up by in 2018?

    C: Are there other established businesses that actually pay a dividend that will produce a better return?

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  5. ECVH50

    I have invested & supported OTM for 2 years and will continue to do so – Strange that you say that their website is no good when Rightmove actually copied the display profile very quickly.

    RIGHTMOVE are the enemy to all estate agents in my book and the sooner all of us agents walk the better – refuse to pay any increase lets try that!

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  6. RAL

    Just out of interest has anybody ever given Rightmove notice and just gone with Zoopla….

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    1. Bless You

      I did for 10 successful years..then #onthemarket killed it and I had to go on rightmove for 12000 a year more. I might sue #onthemarket yet!

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      1. RAL

        Thanks ….how did On The Market kill it, I’m just interested….we’re with OTM and RM and I just wanted to see if companies in other areas of the country use Z and OTM and daring enough to exclude RM. Just noticed recently more people mentioning Z on vals thats all…

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      2. PeeBee

        Sorry, Bless You – but you’re gonna have to talk me through that one…

        …s  l  o  w  l  y.

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