Foxton's Share Price dropping rapidly

officeuk

Why the hell are these dropping so sharply???

IronWolf

officeuk wrote: »

Why the hell are these dropping so sharply???

They're only down 1.9% today, not that sharp, but I think its general pessimism about the London property market

Bubble_and_Squeak

its a lead indicator for house prices and rents in the regions where foxtons operates. the market saw it coming in march. some people on this site are still trying to talk up house prices but there ain't no hiding place from the father of creation.

padington

officeuk wrote: »

Why the hell are these dropping so sharply???

Foxtons had one problem inherent in their DNA. They were happy to be known as the agency that will sell your house for more than it was worth. Eventually that has to have a significant effect on putting buyers off.

Therefore they are geared for a sellers market. However should a buyers market come about, they suddenly would be on the wrong side of the tracks. The snake in the grass. The agency that most buyers know to be double distrustful of.

Therefore, my interpretation of Foxtons is that if there is a sniff that London is gong into a buyers market territory, foxtons gets hit double.

... And Scotland have not finished their little democratic hurrah yet ...

However it's probably also to do with some seriously dodgy insider trading.

officeuk

52 Week High 402.20 52 Week High Date 28-FEB-2014
52 Week Low 221.00 52 Week Low Date 16-SEP-2014

I think sharply is an understatment. If I am reading this right, Foxtons has lost nearly half their value in 7 months.

This is bad for the sellers/EA and their silly insane prices.

Generali

I had a quick squizz at the half year report and it looks like a risky buy to me. No debt to speak of, hugely cash generative, pays a dividend.

They could return a huge amount of value to shareholders by simply gearing up I reckon.

theEnd

They're about to open in Tooting.

Oh dear.

Generali

theEnd wrote: »

They're about to open in Tooting.

Oh dear.

I remember thinking that the 80s property boom had gone too far when a sushi place and a wicker furniture shop opened in Peckham.

Having said that, Balham used to be a dump when I lived there in the early 90s and you won't get much for below half a million quids these days.

tincans

Generali wrote: »

I had a quick squizz at the half year report and it looks like a risky buy to me. No debt to speak of, hugely cash generative, pays a dividend.

They could return a huge amount of value to shareholders by simply gearing up I reckon.

Hmmm,

I wonder why BC partners private equity sold most of their stake when floating Foxtons last year ?

I wonder why they also sold 1/2 their remaining stake 10 days ago and now own only 7%.

The price is below what it floated at a year ago against a generally rising market.

Private Equity - renowned for leaving juice in the game for the mug retail investor.

Perhaps they could raise a load of 10.5% PIK bonds like Phones4U.

Loading debt on to an estate agency when London prices are at an all time high. What could possibly go wrong.

Jason74

Generali wrote: »

I remember thinking that the 80s property boom had gone too far when a sushi place and a wicker furniture shop opened in Peckham.

Having said that, Balham used to be a dump when I lived there in the early 90s and you won't get much for below half a million quids these days.

Yep. My Grandmother lived near Balham when I was a kid (thinking the 80s as the time I'd remember), so went there quite often, and it really was an absolute dump. Brixton likewise. Now they're both mega trendy, and nice but ordinary family houses don't leave much change from a mllion quid. Even Peckham has roads that are like that now . . . .Peckham!.

.
I live in Crystal Palace, a part of the world I know you're not fond of from some of your other posts, but I think you'd be surprised by it now. The triangle is a hive of activity, and it's great independent shops and restaurants rather than the type you might have expected to see 20 years ago.

As for Foxtons, Paddington has it bang on the money imho. My part of London has certainly shifted from a sellers to a buyers market in recent Months, and that is bad news for the Foxton way of doing things, and there new (ish) Crystal Palace Office

officeuk

Foxtons share price is now 215.50. My goodness!!!!