Purplebricks’ chief marketing officer has sold a large chunk of shares in the online agent, turning a very quick profit in the process.
Joby Russell sold the 243,618 shares shares last Friday at 140p per share, netting him £341,065.
He had owned the shares for just ten days, exercising an option to buy them at 12.93p, costing him a total of £31,499.
In ten days he therefore made a profit of £309,566 – equating to £30,956 per day for ten days.
Analysts at Jefferies, who continue to give Purplebricks an ‘underperform’ rating, yesterday sent out a note to investors headed: “Selling shares quicker than they sell homes.”
It noted that the shares were sold on the same day that LSL, the UK’s second largest estate agency, issued a profits warning.
Jefferies said: “We were surprised that Mr Russell, who describes PB as ‘the UK’s most remarkable estate agency and one of the country’s fastest growing businesses’ sold 243,618 shares at 140p, having only exercised the options on those shares on 12 July at a price of 12.93p.
“His holding period of ten days is therefore four days fewer than the average time (of 14 days) it takes PB to find a buyer for its customers’ homes.”
Russell was previously marketing director at comparison site Confused.com before moving to Purplebricks in June last year. He had already been a non-executive director at Purplebricks.
Since the share sale, he is said to retain a “substantial” interest in Purplebricks.
The biggest shareholder in Purplebricks is star fund manager Neil Woodford, owning 28.6% through Woodford Investment Management
Is the name ‘Russell’ becoming synonymous with cheap/ budget estate agency.
Agency that could cost sellers £housands
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Give it a few more days and I predict this story will grow legs.
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Legs… a coat of coarse hair… a tail… and maybe even some ears.
‘Cos eee awww… eee awww… eee awwwt to know better than send out these messages…
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Anyone else get the impression there’s more to follow?
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Good on him. He’s only doing what he is entitled to; it’s probably enough to clear the mortgage… on his boat.
But wait… what does the ‘Oracle’ Robert May make of this?…
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A H£11 of a lot more realism and sense than you clearly do…
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You no Likee?
Awww… diddums.
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What anyone earns is no business or concern of mine.
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Chief Marketing Officer? Has anybody seen the latest TV ads? Does anybody know what Purplebricks stands for apart from cheap? Do they have a culture that vendors can connect with, or are they just opportunist money-grabbers that follow the BHS business model?
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If a service doesn’t achieve best price? then a service isnt cheap. I have an example where a online fee (no sale no fee) model charged more for selling. But achieved over £100k than a cheap list agent.
As such the higher cost agent was MUCH much better value.
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‘As such the higher cost agent was MUCH much better value.’
Yes – in that instance. But what if – and I mean what if – another, High-Street office-based (for example) Agent could have got an even better price than your online-only ‘example’?
That being the case, your “much better value” suddenly becomes expensive to the property owners, Mr Mealham – does it not?
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I’m sorry – you ‘Dislike’ fact?
Proper strange kind of person, you are…
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Watch this space. Rats, sinking ship, leaving, comes to mind!
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Classic way to get ‘paid’ when no one in the business is making or ever likely to make money.
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So let us look at the PB finances:
They turned over 18 million pounds last year and lost 12 million pounds. ie their operating cost is 1.5 million per month and they made 0,5 million per month.
Therefore, in order to break even they shall have to triple their turnover this year.
I do not believe that this is very likely. Another year of loses shall severely knock their stock price and confidence…..will PB ever make a profit in the UK?
Therefore, PB shall have to raise their fees closer to what traditional independent agents charge in the average market place which shall then blow their only real USP….cheap!
That is why they shall have to look at more expensive agency markets such as Australia where they could charge much more and therefore stand a chance of making some money…..funded by the UK share offering?
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Mr Flowers – is my maths out, or should you have posted
‘…and they made 0,5 million per month loss.’?
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Afternoon PeeBee
They made (turnover) 0.5 million per month but lost 1.0 million per month.
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Ahhh… I see!
The mechanics threw me – I’m with you now.
Only one small point to make… with regard to your suggestion that they need to triple turnover to break even – isn’t it the accepted norm that Call-Centre agents lose money?
Why would they – or any other of that model for that matter – want to break the mould?
;o)
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PB share price down today… 4.25p from start of dealing.
Interesting times ahead…
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This does stink like fortnight old kippers doesn’t it!
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Spoken like a true ‘day trader’ that clearly knows his way around the capital markets.
What you meant to say was… “40% up on the initial IPO (just) a little over 7 months ago.”
With the velocity of that stock (look at the trading volumes if you are unsure) you’d be a fool to ignore the fact that the investor community (for reference that’s hedge funds, pension funds and global institutions) are backing this type of horse.
But I guess I’d be a fool to ignore the wisdom of a local estate agent who takes assurance from a 7 hour trading window.
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Does that include an hour for lunch?
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What you meant to say was… “40% up on the initial IPO (just) a little over 7 months ago.”
Nah – what I meant to say was ‘their share price has been up and down more often than the hosiery of a tuppenny trollop, actually.
Today’s events were clearly just coincidence in your considered opinion.
Good – then thousands of shareholders can breathe a mahoosive sigh of relief – especially those that bought at 1.75, a mere twelve weeks ago…
Let’s see what kind of assurances the next few seven hour trading windows bring – shall we?
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Oh… I love it when you hate it.
I must be somewhere near the truth…
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Got no issue with PB – Their model is by far the most superior compared to other online agents. But they have a lot of unnecessary costs which will ultimately be their downfall.
Don’t get me started on their adverts, those two TWONKS drive me insane.
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I’m afraid ‘those two TWONKS’ as you rightly call them are the reason why unsuspecting people are going to them in numbers, I’m afraid. The same way that eenshoooorance is now ‘sold’ by a meerkat, dodgy opera singer or a robot (yet another ‘original’ idea from a Call-Centre Agent that was conceived elsewhere…) – and men bought Hi Karate because they thought that Valerie Leon was going to come along and smother them with her jubblies.
Ironic that the cries of ‘it all happens online, dunnit?’ are fuelled entirely upon using other, traditional, media to get them the business in the first instance.
And the same goes for the portals as well.
Funny, that.
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I for one relish the resurgence in popularity of Hi-Karate.
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Why has the post regarding the Bruce Brothers “running” of JKM and Burchell Edwards disappeared ? I would have been interested to have seen feedback on that!!
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