Shares in Purplebricks start trading today at 137p, after falling 8.5% yesterday.
The tumble came after analyst Jefferies criticised Purplebricks’ business model as being based on listings rather than sales, with no incentive for local property experts focused on winning instructions “with no reward for actually selling a home”.
Its report also said that Purplebricks takes five months to complete a sale, around ten times longer than it takes to find a buyer.
Yesterday, shares started at 150p before falling to a low of 130p, and then recovering slightly.
Yesterday’s finishing price is, however, still well above the initial float price of 100p last September.
Comments (4)
The figures just don’t add up. It is now clear for anyone to see. Before it was all based on predictions but now the true worth is there for all to see. This is a dotcom boom and bust company. Creditors will be calling soon …. it would be insane to invest with this company based on actual performance? I’m sure the regulators will be taking a close look over the next year.
Don’t worry the Bruce Brothers will Phoenix the business like in the past, if it fails, as they seemed to with their other failed businesses.
And that is where it will catch up with them, for we are not the only ones to notice their MO.
When did I predict they would be down to 36p ?
I think by September this year.
However in fairness to PB they climbed way higher than I ever thought they would go and a price correction now is well within expectations.
My guess is will PB have enough money in the coffers to continue their huge marketing campaign this time next year.
Probably not !