WPCT Short I have dipped in and out shorting WPCT for a while, and I am having another dip in for a short position.
WPCT is still stuck trying to sell illiquid holdings from a position of financial distress, the board has just released the NAV at 58.10p (6th November 2019) a month ago it was 64.67p (4th October), 11% drop.
When you look at the monthly NAV drops over the last year, its as though investors are being let down gently.
Share price has dropped 25% in the last month.
How low could it go, market cap is £298M (855M shares) - personally I think a market cap of £150M would be a fair target.
Woodford
Are investors as patient as Neil Woodford?Would star fund manager Neil Woodford sell his house through Purplebricks, the online estate agency? Probably — for two reasons. He could save up to £18,000 by paying Purplebricks’ £849 flat fee instead of conventional agents’ 1.3 per cent commission, assuming his Tetbury home commanded the sort of price his neighbours’ have of late. And he holds a ~20 per cent stake in the company via his funds, so clients would expect him to put their money where his house is.
Purplebricks has the advantage over online and traditional rivals because of its “investment risk tolerance” - a vast budget and, even more importantly, a willingness to invest tens of millions of pounds year after year in a bid to build market share.
With the property market market in a bit of a state across many regions of the world Purplebricks must hope home sellers and investors are as patient as Neil Woodford.
