focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
"I genuinely have no idea and don't really care either way" - This is in reference to your version of facts relating to the Canadian market. It's easy to take words out of context and pretend like the comment is aimed at something else but that comment is solely aimed at your words. I'll reword it for your benefit since you have a problem in quoting things in context. I really don't care about the facts and figures that you specifically quote Sain as you have a clear agenda in talking down this company at every opportunity.
You're highly unlikely to be invested here on the basis of what I see so what is your objective in continuously posting here? If you were searching for a buy in point i'd perhaps understand but I don't think that is even the case. I genuinely think you've been burned in some way and still remain bitter about it. If online agents have affected your employment negatively in anyway than that's unfortunate but posting negative comments continuously on a forum won't help you overcome the difficulties you may have experienced.
I guess Purplebricks just spent £29.3m on an acquisition without doing any research whatsoever then based on your opinion. Why on earth did they go and do that when you're available via the forum to advise them? Hindsight and all that!
So on the basis of what you've just said being true (I genuinely have no idea and don't really care either way), your point is that Canadian housing costs are at their highest as are debt levels relating to property transactions. To coincide with that, Purplebricks plans on developing it's service there which assists in lowering the overall property transaction costs. Excellent point Sain and 1 which truly points out part of the value being offered by Purplebricks in Canada!
That's about as close as a positive post relating to Purplebricks which I've seen from you so far Sain, well said!
Purplebricks*
"Last week Purplebricks acquired DuProprio/ComFree, a fixed-fee and for-sale-by-owner platform in Canada for £29.3m."
"With a model similar to Purplebricks, DuProprio lists over 40,000 properties each year, generates over $40m (Canada) in revenues, and has over 20 per cent market share in the Quebec province."
"the deal was a successful one for the fast-growing hybrid agency, because from a revenue standpoint Canada immediately becomes Purplebricks' second-largest market behind the UK."
"Purplebricks acquired DuProprio at a bargain price, because the latter company was valued relatively lowly."
"whilst set-up costs for Purplebricks in the US meant it spent £17.8m to generate £2m revenue so far, by using an acquisition to get into Canada it spend £29.3m to achieve a business with revenues of £23m. With Purplebricks anticipating growing in both markets - as well as in the UK and Australia - DelPrete says the DuProprio deal is a good value starting point."
“DuProprio/ComFree is primed for growth”
“International expansion is a unique and key tenet of Purplebricks' strategy. No other company in this space (Opendoor, Redfin, Compass, Emoov, Yopa, and dozens of others) has expanded beyond one market. Purplebricks is now in four.”
Link as below:
https://www.estateagenttoday.co.uk/breaking-news/2018/7/proptech-guru-reveals-his-role-in-latest-purplebricks-expansion
Sain - I have no idea where you live but the idea that local estate agents know where all the noisy neighbours are is absolutely incredible. Your local agents seem to be able to advise you on everything and know about all the tenancy agreements in place and which streets have the most cats where they're likely to poop in your garden.
Absolute drivel and is not a true representation of local estate agents. Online agents are here to stay so preach about local estate agents doing everything from researching neighbours to doing your ironing but it's complete nonsense to imply this is the approach by local agents across the UK.
Of course you don't 'need' to. It would be a more efficient use of your time though than continuously drivelling on about how bad Purplebricks is. We get it, you have something against Purplebricks... I vaguely remember from previous discussions you spoke about surveyors or something similar so it seems you're connected to the industry and perhaps have been burned by their presence. It's 1 thing to be invested with a share and continuously post neutral/positively however it's something entirely different to not be invested in a share and continuously post negatively. Some people are just generally bitter!
My comment to you said the following:
"Just quoting the article Sain. You might want to take it up directly with Purplebricks or the Journalist who wrote it if you disagree. Best of luck!"
This means the words you disagree with are quoted both by a journalist and purplebricks so you would need to take any disagreement you have up with them. No point in responding to me as I'm not the source of the information. Respond to the source if you wish to correct it.
"Online-only estate agent Purplebricks has announced plans to buy Canadian real estate company DuProprio and its English-language subsidiary ComFree for £29.3m."
"The deal, valued on a debt-free basis and expected to complete by July 6, and will allow Purplebricks to enter the Canadian market. It comes after German media group Axel Springer bought a £125m (11.5 per cent) stake in Purplebricks, to help the UK company accelerate international growth and expansion in March."
""We admire Purplebricks for what they have achieved across three continents in just four years. We share their ambition and desire to offer consumers a new and better way to buy and sell property,” said Marco Dodier, president and chief executive of DPCF."
Absolutely a company aimed at growth, music to an investors ears!
Link as below:
https://www.ft.com/content/24526d6e-7dbe-11e8-8e67-1e1a0846c475
... struggle to compete with online firms.
"More than 150 estate agency firms went insolvent last year and as many as 7,000 are at risk as high street operators face the triple whammy of online competition, a sagging property market and cuts to letting fees."
"Countrywide, the company behind Hamptons, Bairstow Eves, Taylors and Gascoigne-Pees, has been hit hard by a downturn in the housing market in London and the south-east, a botched revamp of the business and growing competition from new online firms such as Purplebricks."
"Chris Marsden, restructuring partner at Moore Stephens, said: “Insolvencies of high street estate agents are increasing as online competitors continue to chip away at their sales."
Link to article as below:
https://uk.yahoo.com/finance/news/7-000-estate-agents-risk-155209486.html
Just quoting the article Sain. You might want to take it up directly with Purplebricks or the Journalist who wrote it if you disagree. Best of luck!
"revenue in Australia are set to increase by 250% year on year"
"Purplebricks also claims its LPE count hasn’t dropped since March “despite some churn” and that it is “winning market share in a declining housing market”."
"The hybrid agency also says it continues to hire while other traditional estate agents in Australia are reducing their head counts, and that “higher quality” former traditional agency staff are joining its ranks."
Link below:
https://thenegotiator.co.uk/were-not-struggling-in-australia-claims-purplebricks/
"Purplebricks has announced its continued US expansion with launches in Las Vegas and Phoenix" "The Purplebricks model has continued to achieve great results on both coasts by providing excellent service and saving home sellers in California, Connecticut, New Jersey and New York thousands of dollars," "This news comes on the back of several Purplebricks launches in the US over the last nine months" Link as below: http://www.businesscloud.co.uk/news/purplebricks-continues-us-expansion-with-las-vegas-launch
Planned 150-day production EWT set to commence on Horse Hill oil discovery. All EWT regulatory permissions now in place and EWT operations are fully funded. Programme aims to confirm commerciality of Portland and Kimmeridge Limestone oil discoveries and gear-up for first permanent oil production targeted in 2019. UKOG remains confident that the comprehensive long-term flow testing campaign will provide the necessary data to fully assess Horse Hill's commerciality and, most importantly, help meet our corporate target of first stable oil production and significant positive cash flow in 2019." The EWT will comprise a series of three separate test sequences commencing in the Portland followed by the KL4 and finally, the deeper KL3. If time permits a test combining the KL4 and KL3 (a commingled test) may be undertaken. Each test will utilise existing perforated zones as per the 2016 test programme. The expected duration of the full flow programme is around 150 days. Given the currently estimated low Portland production costs of around $20-25 per barrel, the 32 million barrels most likely Portland oil in place calculated by Xodus in 2017, together with the good flow rates recorded in 2016, the Company believes that the Portland is a strong candidate for commercial viability. Consequently, subject to a successful test outcome, the Company is targeting an assessment of Portland commerciality in Q3 2018. To achieve its goal of stable, long-term Horse Hill oil production during 2019, HHDL now plans to submit a further production planning application to SCC in summer 2018. This application will seek consent to produce oil initially from HH-1 & 1z, and HH-2, together with further production wells in a second contingent drilling phase. Look at all those possibilities for success with timelines attached. Superb!
"In the last six years, his business Purplebricks has become the biggest online estate agent in the U.K.�in fact, it could soon be the biggest estate agent full stop." "Every nine minutes a sale is agreed via Purplebricks, day and night, and the group has handled over �10 billion ($13.5 billion) in sales since 2012." "For the uninitiated, an online estate agent combines the best bits of a high street agent (marketing your property, arranging viewings) with the best parts of a digital business (online access on your property sale, from your smartphone, 24 hours a day)." "Today Purplebricks has a stock market valuation of more than �1 billion ($1.35 billion), double the valuation of Britain�s high street rivals Foxtons and Countrywide combined." �I think in the next two or three cycles of people moving house, people will begin demanding the benefits of more technology, and we'll see less and less value in... people, potentially.� Article Link Below: https://www.forbes.com/sites/oliversmith/2018/05/04/britains-billion-dollar-online-estate-agent-is-bringing-its-digital-savvy-to-the-u-s/#424801f4189c
"home owners saved themselves over �140m in commission fees last year by opting not to use high cost traditional estate agents. Purplebricks says the increase in competition from itself and other online and hybrids has put considerable downward pressure on high street commission rates from 2.16 per cent in 2014, to 1.5 per cent today. �This represents a saving of �1 billion to householders over the past four years� claims the agency. The agency gives a regional breakdown of what it describes as savings made by vendors using online and hybrid agents in 2017; this is based on an apparent 1.5 per cent average high street commission which it says was the norm last year: South East - �29.2m saving (based on 149,160 sales); South West - �14.1m (103,000); Wales - �4.0m (47,454); East of England - �21.6m (101,102); Yorkshire and Humberside - �5.6m (84,490); London - �21.5m (92,830); Scotland - �7.4m (102,850); North East - �1.8m (38,818); North West - �9.1m (113,720); East Midlands - �1.3m (79,530); West Midlands - �14.1m (85,204). Impressive savings for customers opting to use online estate agents like Purplebricks instead of overpriced traditional estate agents. And some people have the audacity to question the sheer growth of this market disruptor! Link below: https://www.estateagenttoday.co.uk/breaking-news/2018/4/purplebricks-claims-vendors-saved-140m-in-2017-by-using-online-agencies
1. Purplebricks is a UK-based real estate brokerage company that offers a unique approach to the real estate industry. 2. The company focuses on customer acquisition - with high quality service, support, ever-expanding technology and high quality digital UI. 3. In just three years, they've grown to be third most recognized broker in Britain. 4. They've followed a strategy of aggressive expansion - the company is only three years old, but now has a footprint in Australia, and is entering the US. 5. Despite all of these positives, and an impressive financial statement, the company remains undervalued and thinly traded in the US markets. This presents an opportunity. Article below: https://seekingalpha.com/article/4165184-purplebricks-proven-real-estate-disruptor-rapidly-entering-u-s-market
Hahaha! You are unreal! I repeat: "Estate agents are not required by law to be licensed or qualified" You state I keep going on about Surveyors (which is actually in reference to the fact that every conversation I've had with you ends up with you talking about surveyors when referencing estate agents) then you go ahead and start talking about the RICS (Royal Institution of Chartered Surveyors). Yet again the clue is in the name. We're not talking about surveyors and what you need to do to become a surveyor, we're talking about estate agents. You don't need to be a surveyor to be an estate agent, that's the whole point you don't seem to grasp. Most estate agents are not a member of the NAEA or RICS therefore that is a lie! Now you've committed to something that is factually proven to be untrue which goes beyond opinion. I searched 'London' in the link below: http://www.naea.co.uk/find-agent.aspx I came across 50 members in London in which I set the range to the maximum which was 20 miles. I did a quick search and came across multiple property websites quoting a figure of 2600 agents in London. It's a slightly dated figure of 2-3 years however I imagine it not to be too far different of the actual figure and certainly nowhere near 50. On the basis of these 2 figures that equates to less than 2% of members being a member of NAEA. When have you heard the majority of anything being quoted as 2%. The RICS is really for Surveyors so I think we both know how low that figure is likely to be in reference to estate agents only. An estate agent does not need to hold a degree to become an estate agent so you've taken away all credibility in your comments and opinion. You're seriously implying that to be an estate you need to pass exams which is normally by a 3 year degree? You my friend, are a joke and have absolutely no idea what you're talking about! We're only talking about estate agency here, not being a surveyor and I was quite clear on that. Fortunately I've never been stung by a rogue agent as I would give them the ability to perform my own due diligence and rely on them to know everything I should know as a buyer. I believe that issue is your own. I seen a few different posts from you mumbling on about how the estate agent didn't tell you who the neighbours were and things like that. Your purchase, your duty to find out! Again, you're the one that continues to ramble on about Surveyors so I'm not quite sure why you would think I would be the one to pop into one of their offices to sell a house, it's you that has the obsession with them. I had 2 questions of you which you've ignored repeatedly but I'll ask again: 1. Do you currently hold any shares in Purplebricks? 2. With your obsession in continually referencing Surveyors, what is the connection? I repeat: "Estate agents are not required by law to be licensed or qualified" You will be unable to prove this wrong as it's fact!
Haha, which specific qualification are you referring to? Some 10 hour course you can buy online. To use one that's qualified would suggest you have a choice of using 1 that's not qualified and therefore defeats your own argument regarding how regulated it is. You can't have it both ways! Oh wait, no doubt you're talking about a quantity surveyor (surely not again) but we're talking specifically about estate agents and not solicitors or quantity surveyors that also act as estate agents. I repeat: "Estate agents are not required by law to be licensed or qualified" - Really says all you need to know. It's an advertising/sales job at best! About as regulated as the people that come out to measure up your home for a new set of blinds! You still never answered my question if you hold shares in Purplebricks? I guess the lack of answer implies the answer.... Oh well!
Haha, I feel you're continually proving my previous comments as being accurate rather than providing an alternative opinion. I said previously that 1 of the biggest factors affecting estate agency regulation is how they advertise properties (proof is in the name of the Property Misdescriptions Act). This is effectively about not saying things which are not true such as a property being a 5 bed when it's a 4 bed etc. Not about the estate agent performing due diligence on behalf of the buyer as has previously been an issue you've had. The Consumer Protection Regulation is generalised and does not specifically target estate agency. It can affect businesses of any type and is fairly straightforward if a business isn't doing anything untoward. Similar to the Consumer Contracts Regulations, just generalised regulations affecting businesses of all types with basic requirements to ensure businesses aren't operating unfairly. It's aimed at businesses of all types and does not specifically regulate estate agency. You will not persuade me that estate agency is highly regulated therefore you're wasting your time sending articles and generalised regulations/acts/guidance which are aimed at businesses of all types. The fact remains that estate agency is highly unregulated and the small pieces of regulation that you can scrape together, don't come close to covering the things that you've previously stated. It's difficult to say that estate agency is highly regulated but you can become an estate agent the same day you choose to do so. Estate agents are not required by law to be licensed or qualified, I don't think there's much more to be said on that matter than that!