gamesinvestor
13 Sep 2017
Value of Purplebricks This article tries to take a stab at a possible future value of the business based on a reasonable if not perhaps optimistic set of assumptions -- that Purple Bricks wins 10% of a static UK estate agency market at a defined future (not too distant) date.[link] this is number 9 on Woody's list, I wonder how much similarity in his investment analysis there is between this and his own -- and for all the other in his top 40 (I'm assuming the other 95 stock picks are a stab in the dark, as there wouldn't be enough IT power in his company to work on all those as well as his top 40).Any how, I digress from the main point, the model described shows that based on the assumptions, the mature business once reached might be valued at approximately 328p once all the 10% of the market sales have been won and it's then a mature and stable (inflation linked growth) company. Big IF yes?The value, or more to the point, the price of the shares at close today are approx 391pComments welcome as to whether you think there is any validity in this approach?Games -- anyone up for a similar analysis of their own top 10? -- I must make a start he thinks lol !!
thirty fifty twenty
11 Sep 2017
sub 400p for 2nd time so the volatility continues and a classic chart top pattern forms.the more i ask around re PURP bricks the more my views are re-inforced that PURP are doin very well at the bottom half of the amrket but that for more expensive properties , owners are hestiate to use PURP as they dont want to do the work themselves (why get paid well and then work on your days off selling your property) , also a small amount of anidotal evidence of pricing changes from agents 1% fees offered (on 500k house).some this confirms my view of PURP in the UKand I fail to believe that spending £50m in the US can create a business worth £400m in 12 months.All IMHO, DYOR + BoLPURP is in my portfolio (SHORT)
