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magazineTime to take profit on Purplebricks
Purplebricks (PURP:AIM) 386p
Gain to date: 187%
Original entry point: Buy at 134.31p, 22 September 2016
Some of the momentum seems to be draining out of the Purplebricks (PURP:AIM) story. As such, we’re now going to take profit, particularly as market sentiment is turning and several directors have recently sold stock themselves.
In early June, the shares hit a record level at 460p, more than four-and-a-half times the 100p issue price from the December 2015 stock market flotation.
The challenger to traditional estate agents faces the difficult task of applying its model in the US.
The company announced on 14 June that California will be the location for the company’s initial launch in the US, planned for the second half of 2017.
It is an $80bn market and stockbroker Peel Hunt has noted that capturing just a small fraction of this geography would see US profit exceed the combined figure from the UK and Australia – its other operating locations – by 2022.
After a great run we call time on our Purplebricks trade. (TS)
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