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Foxtons Share Price And The Housing Market - Merged

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Thats a 50p+ drop on the share price. How much total loss to company is that?

Are they doing buybacks ? I thought they opted

For a special dividend to get cash out of the business.

Maybe the director's are buying shares. Would show confidence in the business. Well what happened last time? Did the equity investors get wiped out and old owner bought it back and then refloat ?

Edited by Ash4781

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Brokers review Foxtons after profits warning

Equities researchers at the bank Credit Suisse have slashed their target price for Foxtons’ shares from 372p to 215p.

Foxtons shares ended last week at 158p following its profits warning.

Credit Suisse, which gives Foxtons an ‘outperform’ rating, appears to believe that its shares can recover by some 25%.

Other analysts have also been quick to comment on Foxtons.

Numis Securities reiterated its ‘buy’ rating and set a target of 290p. However, Canaccord Genuity downgraded Foxtons to ‘hold’ and set a target of 228p, cut massively from 382p.

Foxtons floated just over a year ago with the shares priced at 230p. Over the last 52 weeks, its shares reached a high of 402.20p.

http://www.propertyindustryeye.com/brokers-review-foxtons-profits-warning/

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http://www.lse.co.uk/SharePrice.asp?shareprice=FOXT

"having worked as an estate agent in London for the last 14 years I might be able to shed some light on this argument. I will say from the off though that Sain is right. The London property market is one of the, if not the most secure place to put your money in the medium term plus. Yes of course the market can dip when things get overheated like it is doing now and the upcoming election will keep this slow down going at least until next may but if I was looking to invest I would be thinking of doing it no later than then. Unfortunately Billy it was people like you that said the market would go down 50-60% in 2008 and it didn't (about 20% and recovered back to those prices in 2-3 years) and it will be the same pessimists saying the same the next time it dips and again it wont dip anywhere near the amount you quote nor does it need to. The reality is, and ask anyone who actually works in the market and understands it, the dips, when they happen, are mainly made up of a correction for the overheating, not a general market negative movement. The way to always look at why the market will not go down by those outrageous amounts is from a potential sellers perspective: cant get the price they want? well they simply...wait for it...don't sell! Or if they have to move they rent there place out and rent another if they for example have to upsize or change location. this is indeed a fact as this is what happened in second half of 2007 and 2008 - again like myself, ask anyone who actually worked in that market - no will take 50%-70% less than they paid for! I also didn't deal with one repossession in 2008. Also if you knew the development that was happening, the improved transport links and everything else that is going in to make London great then you could easily map out how London is still a bit undervalued in the medium/log term. In terms of foxtons share price that is a different kettle of fish but sain I can correct you on one thing, no negs listers, managers or lower level directors got any shares, only the very top - so you can reach your own conclusions on that."

""having worked as an estate agent in London for the last 14 years I might be able to shed some light on this argument. I will say from the off though that Sain is right" 2nd hand house salesman who works on commission says.......Comedy gold."

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http://www.lse.co.uk/SharePrice.asp?shareprice=FOXT

"having worked as an estate agent in London for the last 14 years I might be able to shed some light on this argument. I will say from the off though that Sain is right. The London property market is one of the, if not the most secure place to put your money in the medium term plus. Yes of course the market can dip when things get overheated like it is doing now and the upcoming election will keep this slow down going at least until next may but if I was looking to invest I would be thinking of doing it no later than then. Unfortunately Billy it was people like you that said the market would go down 50-60% in 2008 and it didn't (about 20% and recovered back to those prices in 2-3 years) and it will be the same pessimists saying the same the next time it dips and again it wont dip anywhere near the amount you quote nor does it need to. The reality is, and ask anyone who actually works in the market and understands it, the dips, when they happen, are mainly made up of a correction for the overheating, not a general market negative movement. The way to always look at why the market will not go down by those outrageous amounts is from a potential sellers perspective: cant get the price they want? well they simply...wait for it...don't sell! Or if they have to move they rent there place out and rent another if they for example have to upsize or change location. this is indeed a fact as this is what happened in second half of 2007 and 2008 - again like myself, ask anyone who actually worked in that market - no will take 50%-70% less than they paid for! I also didn't deal with one repossession in 2008. Also if you knew the development that was happening, the improved transport links and everything else that is going in to make London great then you could easily map out how London is still a bit undervalued in the medium/log term. In terms of foxtons share price that is a different kettle of fish but sain I can correct you on one thing, no negs listers, managers or lower level directors got any shares, only the very top - so you can reach your own conclusions on that."

""having worked as an estate agent in London for the last 14 years I might be able to shed some light on this argument. I will say from the off though that Sain is right" 2nd hand house salesman who works on commission says.......Comedy gold."

Sadly he's been right so far and it could be decades before we see any meaningful correction and by then prices could just drop to today's levels. I need massive wage inflation to buy, can't see it happening.

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Sadly he's been right so far and it could be decades before we see any meaningful correction and by then prices could just drop to today's levels. I need massive wage inflation to buy, can't see it happening.

His experience goes right the way back to 2000. So the only dip he's ever seen is the one that led to interest rates being slashed to a 300 year low, QE on an unprecedented scale, and govt prop after govt prop to try yo keep the market from collapsing.

But of course, it's all about fundamentals, innit?

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But the fundamentals can change, as George has done with PERMANENT Help to Buy, unless Ed and Ed have said they will scrap it when elected ... thought not.

That's not a fundamental...that's a variable.

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But the fundamentals can change, as George has done with PERMANENT Help to Buy, unless Ed and Ed have said they will scrap it when elected ... thought not. And did they also admit that the temporary QE will NEVER be unwound.

What George, Dave, Ed, Ed and the others all say/think/want is completely irrelevant. There are only two variables that really affect what will happen in the future:

1. What Whitehall wants

2. "Events, dear boy, events".

The rest of it is pure theatre.

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Permanent according to George and not denied by Ed and Ed, plus QE will never be unwound. If the taxpayer is paying for 20% of a property then the price can rise by 20% ... as happened with HtB.

Permanent until it isn't.

"But the fundamentals can change, as George has done with PERMANENT Help to Buy"

How come the previous fundamentals weren't permananent ? :D :D :D

Edited by TheCountOfNowhere

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When is the Autumn staement by Osborne?

3rd December, 2014 - plenty of time for some more falls before those in the know - wink wink - start pushing it back up ready for Gorgeous George to bail out the housing market again.

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When is the Autumn staement by Osborne?

3rd December, 2014 - plenty of time for some more falls before those in the know - wink wink - start pushing it back up ready for Gorgeous George to bail out the housing market again.

Autumn statement is very good point. By that time correction in London will be obvious. What will they do? You know they will do something? Separate thread? My money is on stamp duty.

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Autumn statement is very good point. By that time correction in London will be obvious. What will they do? You know they will do something? Separate thread? My money is on stamp duty.

Obvious to some...ALL the housing indexes will be you positive year on year and might remain that way till the election...The forthcoming "dip" will be hailed by the people behind the madness as them having stopped prices getting out of hand....

Edited by TheCountOfNowhere

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Autumn statement is very good point. By that time correction in London will be obvious. What will they do? You know they will do something? Separate thread? My money is on stamp duty.

Yes, stamp duty is my thought also. Especially if they can argue that they did not pay the EU 2 billion and are instead using it as a stamp duty cut.

You watch this stock begin to go back up in the third or fourth week of November - perhaps even as early as the second. In fact, once half term is over all the political journos will be turning their attention to the by-election and the the Autumn statement.

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Property Vision - Foxtons Results

Foxtons have released an unscheduled trading statement reporting sharply lower turnover as a result of slowdown in the London market. If this was a surprise, it shouldn't have been: every London agent has been talking about the collapse in turnover and the possibility of redundancies for a few months now.

Is this the canary in the coal mine for the London market? Should one draw connecting dots between turnover and prices?

There is obviously a connection. High turnover of property usually implies high confidence - which means that buyers are prepared to step up to the plate and respond to competition to buy the best things. Less buyers around generally leads to a weakening in prices but that doesn't necessarily mean a collapse.

What it does say is that all estate agents are in trouble. The London boom of the last five years has been responded to by new agents setting up shop and existing agents opening new branches in new areas. A cursory glance at the sheer number of estate agents on every street must give pause for thought as to how they are all going to make money. They are the best example of an operationally geared business.

Well now we know they aren't making money - and with all levers being pulled by the Bank of England to cool the market it isn't likely that the glory days are going to be back soon.

This wasn't too hard to predict - but still the new offices opened to chase turnover. Lemmings come to mind.

http://propertyvision.com/en/thoughts/blog/foxtons-results

Followed by this news:

Suburb gets 30th estate agency - and it's Foxtons

A campaign to stop a Foxtons branch opening in West Hampstead in London - extensively reported on Estate Agent Today - has failed.

Camden Council has approved plans for a new branch to occupy the former local post office, bringing the total number of estate agencies in the area to 30.

There was a flood of protests against the Foxtons proposal, including one from an existing family-owned estate agency which claimed that there were too many branches of agencies in the area already.

The Camden New Journal reports that council officer Oliver Nelson told a briefing for councillors that the plans “would bring an active and established business into the unit that would be compatible with the parade in which it relates to. Whilst it has been mentioned there are a number of estate agents within the Town Centre, an A2 use is considered to be a compatible use within the Town Centre.”

A campaign group called WHAT - West Hampstead Amenities and Transport - opposed the application and issued a statement saying: “There are already estate agents in West Hampstead yet a dearth of properties for sale on the local market which has forced up prices so another estate agent is not needed and will not benefit local residents.”

“An estate agency in this double unit would not enhance this part of the high street” the group insists.

Post office services are now being operating elsewhere the Foxtons applications insists the firm will “provide increased variety, vibrancy and choice”.

This all comes despite a volatile recent trading past for Foxtons.

http://www.estateagenttoday.co.uk/1521-suburb-gets-30th-estate-agency-and-it-s-foxtons

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Jon Hunt ‘on prowl’ to buy Foxtons back – speculation

Could Jon Hunt be on the prowl for his old firm Foxtons?

A snippet in yesterday’s Telegraph City Diary suggests that this could be the case.

It says there is speculation that Hunt “might be in the market for buying back the estate agent he sold at the peak of the property bubble in 2007 after last week’s profit warning”.

The piece suggests he is considering taking the public company private again, “as it was on his watch”.

The Diary notes: “If the takeover was completely far-fetched, it would be easy for Mr Hunt to issue a denial. Instead, a spokesman conveyed the enigmatic message that the CEO of the Ocubis property fund ‘does not wish to comment’.

“Since Foxtons shares are currently trading at 70p under last year’s IPO price of 230p, after a ‘sharp and sudden’ slowdown in property prices, Diary says: watch this space.”

Well, rich people do sell high and buy back low – it is how they get rich.

Entrepreneurs also sometimes return to their old companies: the most notable example was Steve Jobs, co-founder of Apple who left in 1985, returning when it was nearly bankrupt a year or so later.

But perhaps Hunt – who sold Foxtons for £370m just before the credit crunch – might not get his old company back as cheaply as he thinks?

After all, you might think that mere mention of his possible interest would have sent Foxtons’ shares zooming up yesterday.

Not so: they marked time.

New story on Property Industry Eye

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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