Purplebricks has been hotly tipped as a shares winner this year by a Telegraph writer.
Russell Lynch, the paper’s economics editor, has chosen the online agent as his top share for this year – the one most likely to deliver over the next 12 months.
Lynch said that 2019 was a “year to forget” for Purplebricks.
He said: “Anybody buying into the hybrid company at the start of 2019 will have lost 13% of their money.
“Investors paid the price for a headlong rush into overseas markets under previous boss and co-founder Michael Bruce.
“Losses mounted as it struggled to adapt to US and Australian markets, and he left in April, dumping his stake.”
Lynch goes on to say that under new boss Vic Darvey, Purplebricks made an about-turn, focusing on the UK and Canadian markets.
According to Lynch, “thanks to its first mover advantage” Purplebricks has strong brand recognition.
We’re not sure about the “first mover” description – online agents such as Emoov, House Network and Tepilo all came before Purplebricks, and all have vanished apart from the Emoov brand which is now in different ownership.
However, Lynch says that Purplebricks has 75% of the online and hybrid market, and that its fixed-fee model should offer traction in a housing market likely to pick up.
He concludes: “Sticking to its knitting should see a recovery in the share price.”
Comments (8)
The same old obsessive posters year in year out, you would really think they would have something more productive to do.
Also still no sign of the game changer ‘rummaging for a property’ what is this now the 6th year of development?
Ahhhh… it’s dom-boy – he of the fanboy elite to the PurpleMasters
You are right – it is the same old posters. And guess what – they’ve been right all along. Note that you haven’t commented on the story of the day – despite doing your inept best to dumb it down last night on Tw@tter (and predicting the subject completely inaccurately at the same time)
But as one who has given Purplebricks money to list one of your flips, to then have to pay a proper Agent to actually sell it for you, I’m surprised that you have the neck to jump to their defence.
There again… I suppose you need the share price to get up off its’ @rse so you can flip those as well – more sausage in the machine regardless of sale might get you a penny or two a pop – eh, dom-boy?
So even if you know they don’t work, you’ll fluff up their feathers regardless. Your gain dependent on others’ loss.
Shameless.
Shameful.
……meanwhile, down at pumpmyshares.plz
Rinky, Dinky & Tinky have just returned from Wobbly Share Price Lane where they respectively huddled in doorways whilst duly accepting their New Year incentives of 2 Thai Curries & as many Bags of Sugar that they could carry away, providing they offered “glowing opinion pieces” for their Shadowy Doorway Clients.
I wonder if the fortune teller fellow saw his future coming to an end?
Here’s a thought…. (insert whatever you fancy) and publish it as “Your Opinion…..”
“He concludes: “Sticking to its knitting should see a recovery in the share price.” “
Mr Lynch could be right – and if he is, good for them… and good for the industry. There’s plenty of wool out there.
HOWEVER – I would have said that firstly it needs to learn how to knit; get some decent needles and then stick to a pattern that will actually produce something other than knots in string.
They could make a great pullover – rather than pull(the wool)over people’s eyes as has been the case since launch.
The only ‘garments’ that PB have produced so far were the Emperor’s clothes – and in the last year, more and more people wised up to the f*ckwittery (credit: Jonnie) and instead saw the Emperor’s winky (credit: Robert May).
Oh dear, suspect this will not age well.
“Lynch goes on to say that under new boss Vic Darvey, Purplebricks made an about-turn, focusing on the UK and Canadian markets.”
Well having decided to take a huge financial hit in USA and Oz there has been very little changes he has made in the UK since his arrival .
The best Vic seems to have done is to hike the fee which only serves to compensate for the fall off in instructions during 2019 . Treading water
In addition Introducing “Ask Alesha” . I wonder what she has to say to the 1500 customers who have had their house on the books for 12 months or longer unsold .Serously is that he best he can do ?.
Where are all the new revenue streams?
Some oft the “Burchell Edwards ” mates of the Bruces have followed suit and departed . All that seems to have done is to peel off a layer and expose a big void underneath .The door is wide open for Bricks but Vic has proved a little disappointing .
One area which you can’t fault is Bricks promotion . Attaching themselves to The Olympics team, Scotitish rugby and good causes seems to be a relatively cheap way of gaining exposure compared to costly TV advertising campaigns
Current valuation of the company is now coming in at around £400m. All looks to be fully priced in for the Boris Bounce Will be watching closely to see if they can reverse the trend of diminishing instructions
They certainly wont be hitting the 100k instructions for this financial year originally forecasted more likely 70k
It’s clear that Bricks New Years Resolutions didn” include to stop tellng porkies
Many properties still being listed on the portals as ” just added “when they are anything but . The old board standing proudly in the photo as a dead giveaway
“Many properties still being listed on the portals as ” just added “when they are anything but .”
Hillofwad71 has hit a massive nailhead dead centre there.
I know we are only six days into 2020, but so far, forty-three point seven percent of the Purplebricks “Just added” properties on Zoopla have been #RElistings – some as old as 2015.
That’s a large chunk of already paid; already spent money not about to hit the company coffers anytime ever again.
And whist I agree with How71 in most things, for what it’s worth, I personally doubt they’ll hit 60k listings this year.
They are going to have to start knitting something very soon…
So if I say “Should” a lot, will that mean I should win the Lottery?