George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
“But Purplebricks has surprisingly high operational gearing for a would-be online disrupter. Falling sales and one-off costs are likely to push it into the red this year. The shares trade on an EV-to-revenue multiple of one times, a fifth of its long-term average.
The stock is still unattractive. Purplebricks is trying to go upmarket by tweaking its business model at a time when competition is coming from below. Digital agent Strike is rolling out a “sell for free” service, funded by extras and referrals to mortgage brokers.”
Totally agree. An absurd reaction from some, supported by the price drop but for me another opportunity to top up. DYOR
Agree with you, personally my job is investing and I can take a clean perspective, and I’m quite excited by this as a buying opportunity, the brand and sleep wellness arena continues to grow with very little marketing spend. They’ve hit exactly what they said they would, and the product range is now wider with more redundancy in supply chains (which hampered growth previously). If it wasn’t for the history of this company it would be valued 2-3x current market cap IMO. Plenty of companies make losses as they grow and develop a brand and the value of this brand now extends far beyond the current market cap. They’re on the right side of the online transition and it’s now locked in for mattresses and bedding etc, you don’t need to go to a shop.
IMO a strong buy from here - but you need to be brave and ride the volatility. DYOR.
Isn't it great when your vote actually counted! A rare event. Well done all. Over to you Phoenix.
thanks for sharing
I’ve just voted for the proposal. I’m aligned with Phoenix on unrealised value. How the company can say they aren’t thinking about other investors’ interests is disingenuous at best. We want to maximise returns the current strategy is not doing that. How long does it take to build a management team and corporate plan? They’re a joke IMO. The shares have pumped up (IMO) on the news of potential change at the top. The company is spending shareholder money on PR and letters to communicate with shareholders by post, while Phoenix has huge skin in the game and spending their own money.
Why wouldn't they be working on it? Presumably that's a very simple addition to their software, just a credential to show when you arrive or scan in, like any ID. Nice little bump the last couple of days, seems to be trending with UK macro rather than anything specific on SMRT. And trending back to the broker valuation again.
Decent update, steady as she goes, not wasting money on uneconomic growth, brand extensions to evolve this into a serious proposition. Some investors have no patience. I am building up a position on drops with a 5yr view. Some businesses take decades to properly flower. Hence the share instability, some escape, some win, some lose. This share is not for everyone and not without risk, but at this valuation vs brand value and historic capital investment, there's a significant mis-weight to the downside in my opinion. Bottom draw from here and see you in a few years. DYOR
thanks username
Fair enough, you obviously have more up to date RNS feed than I do, nothing today on LSE for me, still not now
That's a decent update, for a long term holder this is positive, I can see why it's dropped as some had potentially baked in a big uptick from covid custom, but clearly lockdowns have an impact on the short term. Cash at bank and growing in almost every measure, they've got the footings to keep plodding away and building value.
That was a month ago - 15 Feb