Are Robinhood's troubles Purple concerns? (#497)

Simon Shares

• Sygnia (JSE code: SYG) results and a forward dividend of maybe as high as 10%.
• Local GDP at 1.9% for Q1 2022. The economy has now recovered to its pre-pandemic levels.
• Consumer cracking? I interviewed Evan Walker 36One Asset Management.
• Inverse ETFs that go up as the market falls.

* I hold ungeared positions.

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Are Robinhood's troubles Purple concerns?

[caption id="attachment_34522" align="aligncenter" width="761"] Robinhood since listing vs. Purple Group[/caption]

Robindhood	Purple Group
(Nasdaq code: HOOD)	Purple Group* (JSE code: PPE);
Listed July 2021 at $38, hit $85 and now under $10 (-75%)	July 2021 145c, high since 350c and now 260c (+81%).
Makes most of their revenue from selling the deal flow and Gold accounts.	Revenue is from transactions.
The majority of transactions are in options or crypto.	The majority of transactions are in equity, but crypto, EC10, is growing.
Needed a quick $billion to settle meme stock trades.	The balance sheet is fine.
Huge repetitional damage when they halted trade in some meme stocks.
Value traded by clients has been falling since Q1 2021.	Value traded by clients fell in the last set of results.
Not yet profitable.	Profitable, PE ±50x.
Users declined in 2022.	Users grew in last results to +1million active accounts.
Market cap per user = $478 (ZAR7,400)	Market cap per user = ZAR3,263
Revenue per user (2021) = $80 (ZAR1,250)	Revenue per user = R109