The Estate Agent share price thread.

[sancho panza]

3 minutes ago, stoobs said:

'Unusual expense (income)' £237m

What on earth is that?

https://www.investopedia.com/terms/u/unusual-item.asp

' An unusual item is a nonrecurring or one-time gain or loss or expense that is not considered part of normal business operations. Unusual expenses are recorded under operating expenses and then identified by management as unusual in its discussion of financial results or supplemental material for investors.

Unusual items may include:

• restructuring charges inclusive of severance pay and factory closings
• asset impairment charges or write-offs
• losses from discontinued operations
• losses from early retirement of debt
• M&A or divestiture-related expenses
• gains or losses from sale of assets
• abnormal legal costs
• natural disaster damage costs
• charges stemming from changes in accounting policy'

[stoobs]

3 minutes ago, sancho panza said:

https://www.investopedia.com/terms/u/unusual-item.asp

' An unusual item is a nonrecurring or one-time gain or loss or expense that is not considered part of normal business operations. Unusual expenses are recorded under operating expenses and then identified by management as unusual in its discussion of financial results or supplemental material for investors.

Unusual items may include:

• restructuring charges inclusive of severance pay and factory closings
• asset impairment charges or write-offs
• losses from discontinued operations
• losses from early retirement of debt
• M&A or divestiture-related expenses
• gains or losses from sale of assets
• abnormal legal costs
• natural disaster damage costs
• charges stemming from changes in accounting policy'

Thanks SP. Unless they've been closing large numbers of branches, I'm not sure what that £237m could be.

[sancho panza]

33 minutes ago, stoobs said:

Thanks SP. Unless they've been closing large numbers of branches, I'm not sure what that £237m could be.

It'll be in the annual report if you can be bothered.It could be anything to be honest.Given how clunky their shop estate is and how badly some of them are doing-as per my example-it could could be losses related to closures/redundancies.

In an even more amusing effort by the late CEO they were offering online deals that undercut their High St estate.Sadly,I've only recently decided to start shorting again.Otherwise,they would have been a prime candidate.They still are I guess,but these 'death throes' descents can feature vicious whipsaws and short squeezes.I'll leave it to the gamblers I guess.

[TheCountOfNowhere]

Move along now....

 

 

Usually after a day the big fallers stop falling then bounce a bit....not this lot

[Option5]

Will banking covenants come into play ? If so they're screwed.

[TheCountOfNowhere]

The trend is your friend...or your enemy

 

Low

46.50

[TheCountOfNowhere]

[TheCountOfNowhere]

This thread was started at a timely time

Are they going to collapse ?

[leonardratso]

nay, theyll bounce back, you know what cockroaches and vermin are like, also there is never only 1 cockroach.

[Agent ZigZag]

My two pence worth isn’t that they will retain their surveying arm and restructure the estate agent sector through brutal office closure and staff reduction. I consider they have no choice. This could have been largely avoided and is as a result of exceptional poor board decision making and makers on that board As well as the market tide against them.

[TheCountOfNowhere]

20 minutes ago, leonardratso said:

nay, theyll bounce back, you know what cockroaches and vermin are like, also there is never only 1 cockroach.

They might bounce a little when the hit they ground.

We'll know by the end of July.

Plenty going on to say right now, all is not well with the UK property pyramid.

You'd be a fool to not see it now.

[Option5]

Hahahahaha Hohohohoho

Online property firm Emoov bids for ailing Countrywide, as its value plunges from £1bn to less than £90m

http://www.thisismoney.co.uk/money/news/article-5904225/Online-property-firm-Emoov-bids-ailing-Countrywide.html

[eek]

10 minutes ago, Option5 said:

Hahahahaha Hohohohoho

Online property firm Emoov bids for ailing Countrywide, as its value plunges from £1bn to less than £90m

http://www.thisismoney.co.uk/money/news/article-5904225/Online-property-firm-Emoov-bids-ailing-Countrywide.html

Unless  Emoov are trolling - I used to think they were intelligent.

Emoov would be far better waving a single job opportunity around in the towns they care about and seeing which senior agent bites...

[Option5]

7,000 estate agents at risk of going to the wall, says study

High street operators face triple whammy of internet competition, falling prices and fee cuts

https://www.theguardian.com/business/2018/jul/01/7000-estate-agents-at-risk-of-going-to-the-wall-says-study

[tlc]

Poor them!

Quote

More than 7,000 UK High Street estate agents are showing signs of financial distress as they face fewer sales and online competition, a study has found.

The report - from accountancy firm Moore Stephens - suggests that some 27% of agents are struggling to survive.

One of the main reasons is a long-term decline in property sales.

Between 2014 and 2017 the number of transactions in London dropped by 20%, while sales across the UK have fallen by 1% in the past year.

The number of estate agents in difficulty has risen sharply from last year, when just under 5,000 were found to be in trouble.

As well as a drop-off in the number of house sales, Moore Stephens said the growth of online agents such as Purplebricks and Emoov had been a factor.

"Insolvencies of High Street estate agents are increasing as online competitors continue to chip away at their sales and undermine commission rates," said Chris Marsden, restructuring partner at Moore Stephens.

"Some areas in the UK appear to have an excess capacity of estate agents, which could mean there is not enough business to spread around as property transactions stagnate."

He also said that plans to ban letting fees to tenants - expected to come in early next year - could dent profits even more.

Since 1 May, the UK's largest chain of estate agents, Countrywide, has seen its share price fall by more than 60%. It has issued two profit warnings in the past 12 months.

Rival chain Foxtons has also had problems, reporting a 15% decline in revenues during the first quarter of 2018, and its share price has fallen by nearly 25% since the start of May.

In comparison, shares in Purplebricks, the online agent that charges a flat fee for selling a home rather than a commission, have fallen by 8.2%

On Monday, Purplebricks announced further expansion in North America with the purchase of an online estate agent in Canada. Purplebricks already has operations in Australia and the US.

 

 

[sancho panza]

It's a sector that's in structural decline much like retail bricks n mortar

They could do with losing a few of the big players which is lucky because that's what's going to happen

[ashestoashes]

any word on the government raising taxes to support them, how will houses get bought and sold otherwise ?