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Purplebricks is one of the stocks I’m following, and think it’s looking quite good.
What do you think?
not on FT atm, vote for it here: Purplebricks
They overextended and are now trying to regroup in the UK
No branches. Fixed fee. I like their model.
They’re not on Freetrade though?
Was hoping people might look into it and vote for it to be added
Next gen real estate
@samlan I must admit Purplebricks looks like a tremendous buy opportunity, especially at current levels. Did you notice today’s massive drop?
I’d be very interested in reading someone else’s thoughts on this. Has anyone performed a thorough due diligence?
The investment thesis seems to be: the market overreacted following expansion mistakes and the CEO’s departure. If the firm focuses its efforts on profitability in its main market its stock price could grow substantially.
I think they have a tremendous product and impressive brand equity in the UK. Could be nice to get in at almost the same price as IPO day in 2015.
I think it is a big opportunity if they okay their cards right. They over extended and learned from that and are now scaling back. This will help with profitability.
The company I work for considered investing them at an early stage, and our CEO still regrets that he couldn’t convince the board of directors to see it through.
Looks like it might be at a turning point
Quite sad I don’t have any purp shares in my account
Purp up 5% today and it’s killing me
Emmins and his colleagues claim to have found evidence that Purplebricks is using a review-boosting method they call “selective review request”. This involves screening out customers that staff suspect are not satisfied, asking for reviews before homes are sold, incentivising staff to get customers to leave reviews and asking satisfied customers to leave multiple reviews.
Is it really that good then?
In May, Purplebricks’ co-founder, Michael Bruce suddenly quit and later the same month the company shut its Australian branch. Two months later, it announced it was withdrawing from the US market – only a couple of years after starting operations there. Purplebricks says that the decision to exit the two businesses has “given us the opportunity to refocus on our UK and Canada businesses.”
I might not invest.
The US online more efficient home buying market is growing—with 50% of homes discovered online. However, the traditional house purchasing method is still predominant, though it’s in decline and is ripe for disruption because of large hidden fees, lack of efficiency, slowness, etc etc.
Just watched this video by the “big dawg”—if Purplebricks doesn’t have loads of capital, it’ll be hard to complete with Zillow, Opendoor, etc etc:
I can’t see either of those companies coming to the U.K. for >5 years if not more. There is soooo much to achieve in the US before they look beyond.
Why is this one so popular? Purely speculative or do you actually think that people’s habits will change and online real estate will boom? Just curious
I have a small position in these guys, and they understandably crashed with lockdown. But they’re up 24% today, but without any major news. I think it’s too early for the housing market to come back to be honest.
Marketing and other operating costs outpaced revenue growth when I last looked at PURP last year. So even in a bull market this company wasn’t turning into a FAANG. The picture is likely even more grim now after Covid.
One of the more surprising things I found last year was that Alex Springer, the digital publishing giant, invested and was the second biggest investor.
First one was Neil Woodford.
Just posted a few thoughts on PURP on the back of half-year results today: https://freetrade.io/news/purplebricks-2021-off-to-a-strong-start
Hope the piece is useful,
Thoughts on this stock?
I’m helping a friend search for a house at the moment and to be honest I’d only ever used RightMove.
I hate monopolies and, given that the internet was supposed to democratise everything and free the information etc, I like to try alternate services when I can.
I gave Purple Bricks a go and it’s absolutely garbage. I was surprised to see it on here as a publicly limited company. The filters for searching are just awful. Unsurprisingly there weren’t many listings on there for the areas that I was searching. It was a real disappointment.
Isn’t the point of Purplebricks that Rightmove is the dominant platform, so why pay X% for an estate agent when you could pay Y% for PB (Where X>>Y) and get the same result (your house on RM)?
If almost all prospective buyers are just looking at RM then the marginal value of different estate agents should be very small.
Concluding a sale on a property isn’t that tricky if it’s a fairly run of the mill place but if it’s in anyway odd or different it need someone with some skills.
The other factor is that purple brick offer almost no support with ‘progression’ or chain management and this causes many chains to collapse. This doesn’t matter as when you resist you often pay again or pay for upgrades the second time round.