The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Long term outlook good
Well certainly short term revenue under threat by the free offer by Boomin ,should they launch . OTM certainly need a major win like LSL , Yopa etc too as Connells and Foxtons have nailed their colours to the mast elsewhere
Just hopeful that A N Other see them as a reasonable cheap entry point to challenge the market
If not now,when ?
Long term strong out look. Done first entry today, more sitting on sidelines. Waiting on rishi news ref stamp duty as may get a lower price of short term doesn’t allow stamp duty.. that said, it’s a got potential for breaking 140 in 2021
Dont disagree but agents are a fickle bunch. I wonder what the agents wide of Connells CWD thing of this "alliance"-they will think it all sounds a bit cosy.
You may find they move to OTM as an alternative 2nd of 3
ZPL have secured along term contract with Connells ,a major coup in portal wars
We live in interesting times!
OTM might rue the day they pursued Connells through the courts as it now looks that they have lost the opportunity of landing the other big fish too Countrywide
However that move impacts elsewhere too and could stir someone into action and set the hare running
Shareholders can only hope that the Bruces haven't spent all their dosh to prevent them door knocking to take the big boys on
Staying in that street. Who gets the Purplebricks prize?
Or maybe its poacher turned gamekeeper and Axel Springer come arriving here
Thanks, I'm in. Got in sub £1 which was my target although only scaling in incase it goes lower I can average down.
Good luck all
definitely check out the 1/2 year interim report too, published in Oct 2020. It's a nicer read!!!
Not only does it show a first profit - rev up and expenses down - and cash has improved too.
Thanks K0sh, I see the business case clearly now.
All about looking for a good entry, I'll have a look over the weekend and set up a limit buy.
All the best
Has anyone read the 74 page consolidated financial statements....?
just downloaded for when I have time!
The portals charge a monthly subscription.
RM is like a Mercedes Garage, it knows how to charge for the "extra's", for example your logo will not come up on a search result unless you pay for an enhanced subscription. You have to pay extra to get valuation leads too, and for other things.
It does not matter if you have 1 property for sale or 100, the subsription remains the same.
Yes, adding a third portal adds to costs, or a fourth or fifth etc.
PB has regions that subscribe and within those regions they could have many "property Experts" all under the same umbrella. OTMP does not have PB on its books and is not likely to either.
Again, if the EA's were clever, they would dump RM and go with OTMP and PB is dead in the water.
Thanks for the replies to me so far all.
2 quick last questions, do OTM, RM, Zoopla etc... charge estate agents to advertise a property OR do they charge them only if a buyer goes through their website and books a viewing i.e. I am presuming that is what you mean when you say a "lead".
If they all charge to advertise then now adding OTM to the list would increase overall property marketing costs wouldn't it. Even if it is cheaper than RM for example, it's still an additional cost to either the EA or the seller?
How do the likes of House simple or purple bricks etc.. factor into the equation here, aren't they more likely to grow quicker than these?
It may be you that isn’t the cleverest. Either that or you don’t understand a duopoly or haven’t done your research. Or perhaps all three.
OTM suffered from their initial marketing strategy of insisting agents drop either RM or Zoopla. Very few business owners are going to drop a major lead source for an unproven rival, let alone en masse. It has been abolishing this strategy that has allowed significant growth in agent take up. RM are indeed loathed by agents for their relentless price increases but still provide quality leads. As OTM sign up more agents, RM’s position is further weakened, however the problem I foresee for OTM is that in order to increase income, they will at some stage have to increase fees to agents. This may prove difficult if they’ve billed themselves as the cheaper alternative, especially if they still aren’t competing on lead numbers.
It's not the online sells that agents want, more leads from prospective buyers and valuation leads.
RM does this well and OTMP has 70-80% of the leads of RM.
What OTMP needs is at least 10% of RM's profits, and then rest will follow.
EA's are not the cleverest bunch or they would have switched en-masse to OTMP and not be bled dry by RM.
OTMP is partly owned by estate agents and was set up partly to offset Right Move's near online monopoly.
RM know that estate agents need to advertise on their site so charge high costs and are generally disliked within the industry.
OTMP is a cheaper alternative that essentially offers the same service.
OTMP are a lot cheaper - revenue from each ad is c£100 compared to c£1,000 from RM.
Look at the valuations - RM is valued at c£5bn whereas OTMP is c£75m. If OTMP can get say 10% market share of online sells, which is not unrealistic, then their valuation should be 3 or 4 times the current one IMHO
Been keeping an eye in here, not invested but looking for a good opportunity.
I imagine website traffic will be up because of the compound effect of the TV adds couple with a locked down public with time on their hands. Not sure that this year is going to be riveting in terms of actual house moves though, what are you all expecting?
Looking at the USP here it seems 1 benefit, to both buyers and sellers is that properties are advertised on otmp before any competitor is that correct in all cases or just some?
Also, how does the price compare for sellers looking to advertise, same, cheaper or more expensive than competitors?
Many thanks
it would be great if OTMP could provide an update, but in their defence there were updates in Oct and Dec so i suspect they won't want to issue one until early Feb when final YE figures can be confirmed (OTMP YE is 31/1).
Possibly an update on website traffic could be provided - RM did similar recently and OTMP has just done a TV advertising campaign, so surely the news is positive.
In Oct they said YE profit would be breakeven (guessing due to increased marketing), but in Dec they said it would be +£1.5m.
If Jan has been a good month hopefully it might be nearer £2m which would be fantastic.
Only a few weeks to wait
6p below price
Rightmove has just reported 30% increase in traffic so hopefully OTMP has done similar, possibly more with the new advertising campaign.
If so hoping the YE figures may exceed the Nov update. Should know in a few weeks.
Govt March mini budget will be interesting too - hoping for the zero stamp duty to be extended.
well i reckon after a positive trading/end of year update in early Feb and maybe an extension to the zero stamp duty period and your share will be worth 150p soon!
I put a buy order in this morning and it triggered just before the close at 104, but I didnt get many shares, in fact, i got 1 share! ONE single share! /facepalm
That's a fair assumption.
Does that mean there's a big seller in the background?
Virtually all buys today and the share price didn't move
liked that write up and totally agree. Small company, now making a profit and now also advertising on TV.
Very undervalued in comparison with peer (Rightmove) too,
Guessing lockdown will have a short term impact but surprised at share price performance last few days.
Thought we'd be nearer 150p IMHO. I've topped up
This time last year, Boris Johnson had just won the General Election by a huge majority and it seemed as if a new dawn for the UK was about to begin. How wrong we all were…
A few cases of some strange virus nobody had ever heard of had been reported in China, but few people noticed, many didn’t or just brushed it off as “just another bug”. As far as most economists and stock markets were concerned, the virus was “some Asian problem” and will never come over to Europe and the rest of the World…
That all changed as February drew to a close and Covid-19 began to hit Europe. Lockdowns became the new normal and shares plunged. Calling 2020 a rollercoaster year for the markets doesn’t do justice to a rollercoaster or even being in a theme park! Markets continued to collapse in the spring to levels not seen for over a decade as coronavirus hit global markets and the uncertainty and implications of what all this actually meant were really being hammered home.
Although much of the wider losses have been recovered, when it comes to individual equities as always there have been some notable laggards and a few surprise leaders. Here, we have selected a dozen “alternative” companies that have a varied company business model from a focus on Asia, Bitcoin, and Palm oil to Helium, the Housing Market and Graphene! It will be very interesting how this carefully selected “Basket” will perform in 2021 and all should be worth following over the next 12 months…
https://total-market-solutions.com/2021/01/12-companies-to-follow-in-2021/
First profit.
Great to underpromise and over deliver. Well done OTMP.
I bet big time on this share 18m ago when I saw leads suddenly start to come into my agency from them when prior to that I did not give them the time of day.
I stuck with them during the covid sell off in March and am now showing a healthy profit.
Compared to the billions that RM and Z are valued, this share could ten bag and still not be valued at half of them two.
GLA.