Member Info for terrace

What it is worth and what it costs are two completely different things,dangerous to short this with so many people thinking it is worth 15x NAV.The company needs to have after tax profit sof £15m a year on the horizon to justify the present SP,how likely is that do you think?.

The NAV here is about 28 per share,,people are expecting a lot here,trading these shares at the remarkable price of over 400p.This is a proper dotcom bust waiting to happen.

For the current SP,a company should have pre tax earnings of about £85m in sight.....what does the market see in this company that is not immediately obvious to some?.

As has been said before,what matters is profit not market share etc.The SP is anticipating £50m plus profits after tax and they might never get anywhere near that.The SP has dropped about £1 from its irrationally exuberant high a few weeks ago and there is a lot of the dotcom frenzy feel about this stock which was rampant 16 years ago or soin the market.Domination of online home sales is not a long term done deal here,be careful.

http://www.propertyindustryeye.com/is-online-estate-agent-purplebricks-over-valued-asks-financial-times/

https://www.youtube.com/watch?v=71ldmjt66lQ

The market is pricing PB as if it were making after tax profits of about £50m per annum right now.This is quite unbelieveable and clearly the huge share trades by the Directors indicate that they cant believe the current valuation.At the end of the day all that matters is profit,not market share or world domination.

http://www.thetimes.co.uk/edition/business/redrow-swoops-on-ailing-house-builder-bovis-qp65qxg5l

Both Telford Homes and index trackers will do very well for you over the long term,at least 5 years,but probably nothing will match the magnificent return you have made in PB over a very short period of time.Well done so far.

come into play on Tuesday 14 March,it will be interesting to see how that affects matters.

https://www.moneyam.com/shareprice/PURP

"commiseration"....the feeling you get when you have paid upfront and not achieved a sale.

It would be interesting to know what % of PB clients pay up and don't manage to sell sell through PB thus getting nothing for their money.Surely sellers get a couple of high street agents to value their homes anyway prior to instructing PB as a value check.If PB can sell your home for the same price and in the same timescale as a high street agent,they are on to a winner,if not they are going to struggle.

The placing shares do not come into play until 14 March.It is profit that matters and not turnover or number of instructions or market share etc and I will leave you to your dreams of what PB might achieve.

Rightmove has only 93m shares in issue and has demonstrated its ability to earn profits.PB has 248m shares in issue and has not demonstrated its ability to earn profits....yet.

That would value PB at £1000mm,the company would need to have after tax profits of about £70m per annum to justify that.The present SP is absolutely ridiculous for the current stage of its life.This could very well all end in tears you know.

The SP is what it is and nobody can predict its exact path going forward,30p is what it is worth today,not saying that's what the SP should be.

PB is actually worth about 30p a share today,the other 295p is what is expected(hoped for ) of them going forward.Thats a massive show of faith in their ability to deliver eventually.

Gotcha !!!

http://www.propertyindustryeye.com/investment-website-says-purplebricks-competitors-face-mammoth-task-to-try-and-catch-up/