Purplebricks recorded a volatile bout of trading on London’s Stock Exchange yesterday, where it ended the day with a 5.7 per cent loss on its opening price.
Many share prices were adversely affected by worries about China’s economic performance, but the Purplebricks loss was greater than most; it closed at 91p, down 5.5p or 5.7 per cent on the day’s opening price.
The FTSE-100 closed down just two per cent.
The online agency - backed by star fund manager Neil Woodford - started trading on December 17 on the Alternative Investment Market, regarded as London's junior market.
Then, the 240m ordinary shares were placed at 100p each based on a market capitalisation of £240.3m.
.png)
.jpg){kind=logo}
.jpg)
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
.png)
.png)
.png)
%20(002).png)
%20(002).jpg)
.png)
Join the conversation
Jump to latest comment and add your reply
Can't say I'm surprised.
How long before we hit 50p, then 10p? Three months, six months... anybody's guess.
Woodford my have invested a few million (of his clients) pounds into Purple Bricks but that is obviously a miniscule amount of money in the world of fund management.
I'd go as far as to say that his investment represents a 'punt' on which the wrong outcome will have almost no effect on the overall fund.
Also, lets not forget that NW has the clout to make a prophesy self-fulfil. Woodford says PB are great and buys them, the market say 'hey NW is buying PB' and they buy them too. Up goes the price, NW suddenly decides that PB has realised some good value and sells them. Down goes the price.
Even with NW's backing, the initial response has been unspectacular, to say the least. Watch this space......
If Purple Bricks is really worth £240m after a few months of trading, then one will show one's arse on the steps of Westminster Town Hall.
Please login to comment