Foxtons Share Price (FOXT)

Interesting.........hmmm !

I hold a few properties in prime central London myself. However, without a meaningful shift in political direction, the prime London residential market is likely to continue struggling. The non-dom regime has effectively ended, many high-net-worth individuals have already relocated, and even young professionals are increasingly choosing life abroad over London. The stubborn belief that higher taxation is the solution to every problem continues to deepen — and yet the underlying issues remain unresolved. What was sold as economic justice has, in reality, been driven largely by envy and politics. The result is a clear own-goal: the policies have backfired, damaging London’s attractiveness and property values without delivering the intended benefits. The idea of new homes being built in London has too backfired .

Some will disagree with me till one day they will either wake up or have nobody to disagree with as the value creators will have all left. If like me you live in London its noticeable how the wealthier areas have seen property values drop . Moved to Milan or Dubai ( war will not help now mind you ) or other lower tax jurisdiction . But again I don't want to anger those in favour of such taxes. Their belief is that someone will be happy to stay and get fleeced . Sadly they are wrong. One day they will learn sadly it takes too long for some.

I was sent this research note at the weekend and after several years of following the turnaround in the company's fortunes I have to say its the best piece of research I have read about Foxtons.

It's quite lengthy but for those whom are invested and cast their eyes in this forum chat, here follows the link.

Just scroll down and download the pdf file, I suggest doing it tonight as I have already sent out emails this afternoon so don't be surprised if you suddenly see it behind a Paywall in the next day or so.

https://h2radnor.com/research/

Sadly it may come to late to save Foxtons , especially as as a 45p 3 month VWAP is now in courtesy of the blatant manipulation courtesy of IG Index and JP Morgan ( the biggest bank in the world !) and their 90day OTC agreement.

If a bid does materialise this week you can safely say that a derisory price of 45p is going to be the basis of a bid for Foxtons.

Dividend money in this week, potentially £3m could be re-invested back into Foxtons shares, will IG Index and JPM manipulate the stock back down again or instigate a final tree shake so we can all top up.on historical low prices ?

I doubt it.

Don't you think JP Morgan (biggest bank in the world) have the ability to short on their own book? Krakow is also a renowned global hub of outsourcing.

FOXT is trading at a PE of 10x, which considering the environment seems fair to me, maybe even slightly bullish. Since the UK housing market and I include rental in that is unlikely to regain momentum anytime soon, the current SP is no screaming bargain. Foxtons are going to have to grow their way out of this organically or put up the for sale sign and hope for a 30% premium at best.

Ok, just looking into this a bit further as the identity of this trade remains a mystery...........until now!

Ig Index declared this holding of just shy of 9m shares on 27th January via an equity swap deal as we know.

We also know it took place in Krakow in Poland, I for one didn't know that IG Index had an office in Poland until yesterday.

So, why Poland and not the UK, why more 'cloak and dagger' dealings in Foxtons shares even after 30% or £90m being wiped off the market cap since July last year ?

We also now know that at 41.5p and yet another year low for Foxtons shares the mystery client made £1m profit by manipulating Foxtons shares down from 52.53p to 41.5p and thus wiping off another 10% off the market cap of Foxtons or say £30m !

But as I mentioned a few days back IG clients can't short Foxtons shares and dealings are for 'closing only' trades.

So someone has 'arranged' a deal with IG Index lodging 9m Foxtons shares as a guarantee or collateral if you like.

These sort of deals whilst on the face of it seem very simple there is a very complex legal framework attached and are mostly confined to hedge funds and US Banks, they are particularly well versed in this type of game play.

So, the other side to this deal who has manipulated Foxtons shares down to 41.5p to line their own pockets must have a holding of at least 9m shares of Foxtons, have a powerful legal and compliance team for contractual purposes to enter into an equity swap contract.

That means only seven of the top institutions could be accountable.

But why would any insitution want to enter into a 'short' trade after all this time and at a ridiculous low price whilst making further paper losses in the stock.

Well, all but one and you will never guess who also has an office in Krakow in Poland...........JP Morgan !!

How's that for a conspiracy theory 🤔