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Foxtons Share Price And The Housing Market - Merged


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HOLA441
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The big agencies (JLL/CBRE) are posting record profits. JLL has set itself an "unlimited budget" for acquisitions.

Not surprising then ...

"Big risers away from the REITs included the estate agent group Foxtons, which finished the day up 5.06% at 208p as takeover rumours begin to take hold in the City. First tipped in Property Week for a takeover, it appears the talk is getting louder"..

.

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Hedge funds betting on property share prices falling

Foxtons, Savills and Zoopla are among property firms whose shares are being “shorted”.

The Financial Times reported that several hedge funds have taken out short positions – “essentially bets that a company’s share price will fall”.

The FT’s report says that the hedge funds are taking out bets specifically against the London housing market.

The report adds: “While the bets are still relatively small, they represent the first sign that hedge funds have begun to move against the UK property market after several years of surging house prices, and the high-profile stock market listings of Foxtons and Zoopla.

“London house prices have risen by 50% in the past five years, according to the Office for National Statistics, but the top end of the market has wobbled in recent months as a crackdown on foreign investors and the threat of a mansion tax stirred uncertainty.

“Foxtons, a rapidly expanding chain of estate agents focused on expensive parts of the capital, went public in 2013.

“It issued a profits warning last autumn, and its sales commission in the final quarter of 2014 slumped by 25% as a result of a ‘challenging’ market.

“Zoopla’s subsidiary site PrimeLocation is the most prominent website for British luxury property sales, and a third of Zoopla’s revenues come from the London market, according to estimates by analysts at Exane BNP Paribas.

“It has also been hit recently by the launch of a rival portal, OnTheMarket, by a group of disgruntled estate agents.

“The bets against Zoopla are at their highest level since it listed in June 2014 and have risen by 42% in a month.”

The FT report says that Berkeley Group, London’s largest housebuilder, is also having its shares shorted.

http://www.propertyindustryeye.com/hedge-funds-betting-estate-agents-share-prices-falling/
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  • 2 weeks later...
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  • 2 weeks later...
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I have to sya, this is my favourite thread:

http://www.lse.co.uk/ShareThread.asp?tcode=gi9m0ohn6l&ShareTicker=FOXT&msg=1

"

194.50 Bid: 194.50 Ask: 195.50 Change: -10.50 (-5.12%)

"

Better than this:

"FT - anticipate bad news

Today 10:47
The giddying swings of London’s housing market will be fully in evidence when estate agent Foxtons reports its full-year results.
The agent is best-known for trying to gentrify scruffier parts of the capital, its Mini Coopers and the bars inside its branches. It went public to great fanfare in late 2013 as the market was booming but in the past six months has seen its performance slide as London is now acting as a drag on UK house prices.
Foxtons saw its fourth-quarter sales commissions drop by 26 per cent, it announced in January.
Its shares are being shorted by hedge funds which have taken a negative view on the prospects for the London market.
Foxtons’ pre-IPO private equity owner BC Partners cashed out of a substantial proportion of its remaining stake over the course of last year, before the market decline began to bite.
Its share price is around 10 per cent below its IPO price of 230p a share, as investors anticipate further bad news this week. Kate Allen

EARNINGS

Foxtons FY 12.00p (13.30p)"
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Property Week:

.... "So, it’s not until Wednesday when we get final figures for 2014 from estate agents Foxtons that things start to get interesting. The group has had a torrid time of late, although the share price has recovered in recent weeks.

Analysts are forecasting revenue for the year to 31 December 2014 to rise to £143.93m from £139.18 in 2013. Profit is expected to rise to around £42m from £38.95m last time, but shareholders are set to be disappointed at earnings per share (EPS) drop around 10% to 11.93p".

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I think you are obsessing about Foxtons to be honest. Come on in. Take a seat. Sit down and tell me your problems.

I think the City boys just look around for stocks to pump, dump and repeat. Foxtons is a good example as it has the lure to draw in lots of small investors on the rise.

You can see this pump, dump, repeat more clearly in the US where you see numerous stocks allowed to go so low and then... WHAM... they shoot up despite nothing fundamentally changing the company. They then get so far and back down they come again. They nearly always tend to be stocks that the public will be aware of or stocks that have had, at some time in the past, a buzz about them.

I am half suspecting GOPRO to shoot up again sometime this year and basically double in price - IF the boys in NY decide that they have had enough fun shorting and decide to go long. Fits all the criteria.... pretty much like Foxtons does.

I know nothing :)

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Foxtons’ pre-IPO private equity owner BC Partners cashed out of a substantial proportion of its remaining stake over the course of last year, before the market decline began to bite.

So whilst the media was full of reports of how fast house prices in London were rising BC Partners cashed out? Nothing surprising there.

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So whilst the media was full of reports of how fast house prices in London were rising BC Partners cashed out? Nothing surprising there.

obsessed, me, definitely. This share symbolises for me all that is wrong with the uk economy.

I wonder why they cashed out?

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From Property Week:

London estate agent Foxtons has posted pre-tax profits of £42.1m for the year to the end of December 2014, up 8.2% on the same period in 2013.

Group revenue rose by 3.4% to £143.9m, but adjusted earnings before interest, tax, depreciation and amortization (EBITDA) fell by 6.9% to £46.2m. Adjusted EBITDA margins fell by 360 bps to 32.1%, compared to 35.7% in 2013.

Despite the drop in margins and EBITDA, the group is continuing with its expansion plans, opening seven new branches this year, bringing the total to 51. Total dividends for the year will equate to 9.7p per share, or £27.3m for 2014, bringing total dividend returned to shareholders to £42.7m since the group listed on the London Stock Exchange in September 2013. Across the business property sales accounted for 48.5% of revenue, lettings represented 46.8%, and mortgage broking 4.4%. Sales volumes reduced 3.7% for the year due to a market decline in the second half of the year, while lettings volumes increased 1.7% for year. Mortgage broking volumes increased 23.4%.

Nic Budden, chief executive of Foxtons, said: “2014 was a year of contrasting halves. The first half was characterised by a very strong property sales market with transactions reaching their highest levels since 2008. In the second half we saw a sharp downturn in property sales volumes, particularly in Central London. Despite these challenging conditions in property sales markets during the second half of 2014, our centralised business model, effective expansion strategy and strong position in lettings enabled us to grow revenues and maintain high EBITDA margins. Whilst we expect property sales activity to remain subdued at levels comparable to those seen in late 2012 and early 2013 until greater political and economic certainty returns, the long term fundamentals of the London market remain sound and attractive. We continue to be confident that our organic expansion strategy, together with our strong lettings business, will enable us to grow revenue and profit even in a flat property sales market. Our new branches are performing well and we are on track to open another seven this year.”

Analysts reacted positively to the results. Chris Millington at Numis Securities said: “Foxtons results are in line with expectations, but to reflect the continued depressed nature of the sales market and some small tweaks to our branch roll-out assumptions, we are reducing 2015 estimates slightly. We retain the view that the longer term dynamics of the London housing market and Foxtons business model are attractive and therefore we are leaving our target price and buy recommendation unchanged.”

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