Purplebricks Share Chat (PURP)

Yes they have averaged approx 2m cash burn a month, far better than their previous months.

Looks like the traders have been and gone, in for a quick quid (or not in this case) and on to the next one.

It would be interesting to know if they are offering any additional support to their LPE's. If they don't, without them they haven't got a business.

£35m left in the Tommy so at least the cash burn hasn't been raging

Classic Bricks this morning as the Govt has clamped down on viewings Fully operational yet it shut its call centre !

"Online agent Purplebricks is still fully operational for business, a spokesperson confirmed, although it has shut its call centre."

Locks
Priceless

"We are all aware of the current situation, ..."
Are You?

Only rampers need reply!

I have no time for shorters or derampers...Shorters should be kicked into the gutter, we are all aware of the current situation, ...

'F Off' - excellent in-depth analysis of the problems facing the housing market when banks are freezing mortgage offers, surveyors are not inspecting properties and the government are discouraging viewings of occupied properties.

F Off

Yeah hes just as popular on intu as well...total numpty..
Goes about on various Boards talking carp...

Listen lads you can stamp your feet , bristle with indignation shoot the messenger for events which are taking place in real time .ignore some salient facts much as you like but as ever DYOR but don't blame me for the trajectory of the SP

Who has the nuts to buy soon im sure will do well

Lockesboy, Love your latest post !My sentiments exactly

You are a twunt, you come on here, a stock your not invested In...trying to drive down the SP so you can get a discount...been trading over 30 years ...seen your kind many times before...every post is negative...and let's not forget you from the Countrywide...we know this because you post on there every day....TWUNT..

Latest Gov't advice to estate agents .I include Bricks under that generic heading

The new government guidance says that if a customer’s circumstances change during that three month period, lenders will work with customers to help them manage their finances as a matter of urgency.

The guidance also warns potential sellers that “getting your home on to the market may be more challenging than usual in this period. There should be no visitors to your home.

“You can speak to estate agents over the phone and they will be able to give you general advice about the local property market and handle certain matters remotely, but they will not be able to start actively marketing your home in the usual manner.”

Just to banish any doubt that Bricks will be still taking many new instructions during the shutdown in advance of their high street brethren

https://propertyindustryeye.com/housing-market-is-suspended-as-banks-tell-government-valuations-are-impossible/

Think the cavalry have arrived before the artillery have finished firing

One other problem BRICKS like other agents have listing fresh instructions during the shutdown is that unless they provide an EPC certificate they will be non -compliant

So Vic can twiddle with his gadgets as much as he likes

This might be interesting

Banks are in talks with government to ‘freeze’ housing market says FT

where doing ok here...holding strong. see ya

The cavalry have arrived , spotted a bargain and talking through their boots

CHASEHOLM
," Fees alone of 1/2% as oppose to conventional estate agency on high street 4%"
That simply isn't true

Generally speaking estate agents fees are around 1/1.5% and on properties under £100k no real difference to the high street+you get a better service Many of Bricks online competition charge less

The problem has been Bricks have been incrementally increasing their fees of the gap has narrowed

"PURP was already dominating the market"

They already have plateaued and instruction levels have reduced In Jan /Feb for example they were less than in 2019 whilst their competition had perked up

LOCKES
"Their cash burn right now must be significantly less than any of the big four, no rent, rates buliding insurance or costly offices to consider as they are all online"
Not the case
Luckily the Big 4 have not had expensive operations overseas to close down or the elephant in the room,a £25m marketing budget which pays the annual cost of plenty of High Street Offices

More importantly this considerable sum burnt didn't even increase the number of instructions

In terms of remuneration their experts are paid no more no less than their High street counterparts .In addition there is a tier of expensive regional managers who apparentally add little to the party

Having said that I don't disagree there might be some mileage at todays price but they need to get their act together

Ps . I noticed Countrywide still dropping !

Yes, I sold in the drop..but before the drop this was slowly going up . Purple Bricks will Monopolise the housing market and theres is only one way this is going and that's up . I brought in last week and again this week . Will buy in heavily again at some point today /tomorrow

I bought in yesterday, £10k ...buy and hold for me...welcome aboard..
atb

Huge upside IMO. I have multiple friends in the estate agency sector, all incredibly concerned for how the sector will operate in the short term and long term. PURP was already dominating the market pre this crash, fees alone of 1/2% as oppose to conventional estate agency on high street 4%+ was just one factor their market share is huge. KFH and Churchods have previously raised concern within their business and announced closures and PURP providing full online exclusivity to the market is worth the punt. I don't think anyone with full conviction on where the state of the market is presently as a whole we can reach peak highs. But this market is stable long term. Thus easily could reach double the SP IMO. I've bought in today and happy to hold through the worst.

Good luck to all.
Chase

im not so sure its evaporating...their cash burn right now must be significantly less than any of the big four, no rent, rates buliding insurance or costly offices to consider as they are all online ...right now its a bad time for estate agents but it has got to be a lot worse for those that have offices in high streets across the country, the cost must be in the millions, those estate agents are going to fare a lot worse than here...thats just my common sense opinion, not to mention Bricks is one of if not the best online estate agent in my opinion and their costs are significantly cheaper than their high street opposition...
atb

Yes they might not have bricks and mortar offices to run up and down the country but that is replaced with a nationwide marketing budget to keep the brand in peoples minds, which costs the same if not more than high st offices, especially when you're advertising on national TV. It's their 'cost of doing business'. Considering homeowners only move every few years on average, they will have to keep spending the money on advertising.

The issue is, 1m of advertising is unlikely to being in 1m of revenue at this moment in time.

It appears as though stocks is in for a quick trade, in and out, and thats fair enough, but really you should be using TA for your entry and exit points, the fundamentals here just dont stack up. No debt - agree on this, they had 41m Dec 2019. We are now almost 4 months on from that, the cash will be dwindling away until theres nothing left or for axel springer to buy them out. Look at my last post which states their cash balances over the next 2 years. The cash balance is literally evaporating

yes, and its down 75%......so why sell here, when it should be 70p min, tey are cash flow postive........and corona effect is all in....so 50% discount, its buy here...not a sllll :)...wake up