![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/05\/Charles-Savage-tweet-responding-to-criticism.jpg\")
<\/a><\/p>\nOn Wednesday, 26 April, Savage took aim at EasyEquities critics, especially Karan and AltVest Capital, through a post on Twitter.<\/p>\n
He said it was interesting to note the rhetoric that EasyEquities is easily replicable and has no defensive moat.<\/p>\n
An economic moat refers to a competitive advantage over the company\u2019s competition to preserve market share and profits.<\/p>\n
Savage said most of the criticism came from an \u201calternative competitor whose best efforts have yielded almost no clients and the sale of a game farm\u201d.<\/p>\n
He said EasyEquities had achieved more for clients than any stockbroker before it and that it was just the start.<\/p>\n
Savage deleted the tweet after some Twitter users questioned the value of engaging in such a matter.<\/p>\n
\u201cDeleting tweet, fair comments, time to stay focused on what we are doing not anyone else. Cheers guys see you later,\u201d Savage explained.<\/p>\n
A day later, he posted, \u201cA tough but fair week. Incredibly grateful for all the support and factual coverage\u201d.<\/p>\n
\u201cWe will not be distracted from our purpose, enabling financial freedom for more South Africans every day will change the economic fabric of the country and reward all stakeholders in time.\u201d<\/p>\n
Daily Investor asked Purple Group about Savage\u2019s comments and claims, but the company preferred not to comment.<\/p>\n
Koshiek Karan responds<\/h2>\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/05\/Koshiek-Karan.jpg\")
<\/a>Koshiek Karan, AltVest Capital chairman and BankerX founder<\/p><\/div>\n
Daily Investor asked Karan for feedback about Savage\u2019s comments, and he was complimentary towards what EasyEquities has achieved.<\/p>\n
\u201cEasyEquities has done an incredible job of democratising access to stocks and creating a channel of accessibility that did not previously exist. It\u2019s a brilliant solution to a burning problem,\u201d he said.<\/p>\n
However, he said capital markets are unforgiving, and great solutions aren\u2019t always great businesses.<\/p>\n
He said Purple Group\u2019s valuation was driven to eye-watering levels because of a confluence of factors in the past.<\/p>\n
\u201cYou had retail euphoria, a surge in meme stocks, indulgent levels of stimulus, historic low-interest rates, the last gasps of a bull market, elevated stay-at-home trading activity, and the adrenalin fuel of a community raging off speculation,\u201d Karan said.<\/p>\n
He added that Robinhood\u2019s stock price decline had been a great predictor of the EasyEquities collapse. \u201cThe greed\/fear pendulum is universal.\u201d<\/p>\n
\u201cThe equity market bubble popped with consumers drowning in an avalanche of debt and battling steep energy prices and drained by exorbitant costs of living,\u201d he said.<\/p>\n
\u201cEasyEquities, at its peak, relied heavily on discretionary spending. Choosing between food stocks and actual food is a pretty easy choice.\u201d<\/p>\n
Karan said if the price is what you pay and value is what you get, the price shareholders paid for Purple Group, and therefore EasyEquities, a year ago was pretty steep.<\/p>\n
\u201cIt\u2019s a sobering lesson in the inevitable gravity of fundamental valuations. Whether you\u2019re Tesla, Amazon or Purple Group, the fundamental valuation will always act as a magnet,\u201d he said.<\/p>\n
\u201cSometimes it takes months or even years, but it will happen. Massive valuations bake in a ton of good news and lofty expectations, which are often difficult to deliver.\u201d<\/p>\n
\u201cThe apocalyptic EasyEquities meltdown and reset in valuations are signs of a healthy and functioning set of capital markets.\u201d<\/p>\n
Purple Group directors\u2019 dealings<\/h2>\n
Daily Investor analysed Purple Group directors\u2019 dealing since the start of 2021 to gain a better understanding of the concerns raised by some investors.<\/p>\n
The analysis showed only two types of trades since January 2021 \u2013 selling shares or buying shares via options.<\/p>\n
The table below shows all the non-option share trades by Purple Group directors over the last two years.<\/p>\n
\n
<\/a>Koshiek Karan, AltVest Capital chairman and BankerX founder<\/p><\/div>\n
Daily Investor asked Karan for feedback about Savage\u2019s comments, and he was complimentary towards what EasyEquities has achieved.<\/p>\n
\u201cEasyEquities has done an incredible job of democratising access to stocks and creating a channel of accessibility that did not previously exist. It\u2019s a brilliant solution to a burning problem,\u201d he said.<\/p>\n
However, he said capital markets are unforgiving, and great solutions aren\u2019t always great businesses.<\/p>\n
He said Purple Group\u2019s valuation was driven to eye-watering levels because of a confluence of factors in the past.<\/p>\n
\u201cYou had retail euphoria, a surge in meme stocks, indulgent levels of stimulus, historic low-interest rates, the last gasps of a bull market, elevated stay-at-home trading activity, and the adrenalin fuel of a community raging off speculation,\u201d Karan said.<\/p>\n
He added that Robinhood\u2019s stock price decline had been a great predictor of the EasyEquities collapse. \u201cThe greed\/fear pendulum is universal.\u201d<\/p>\n
\u201cThe equity market bubble popped with consumers drowning in an avalanche of debt and battling steep energy prices and drained by exorbitant costs of living,\u201d he said.<\/p>\n
\u201cEasyEquities, at its peak, relied heavily on discretionary spending. Choosing between food stocks and actual food is a pretty easy choice.\u201d<\/p>\n
Karan said if the price is what you pay and value is what you get, the price shareholders paid for Purple Group, and therefore EasyEquities, a year ago was pretty steep.<\/p>\n
\u201cIt\u2019s a sobering lesson in the inevitable gravity of fundamental valuations. Whether you\u2019re Tesla, Amazon or Purple Group, the fundamental valuation will always act as a magnet,\u201d he said.<\/p>\n
\u201cSometimes it takes months or even years, but it will happen. Massive valuations bake in a ton of good news and lofty expectations, which are often difficult to deliver.\u201d<\/p>\n
\u201cThe apocalyptic EasyEquities meltdown and reset in valuations are signs of a healthy and functioning set of capital markets.\u201d<\/p>\n
Purple Group directors\u2019 dealings<\/h2>\n
Daily Investor analysed Purple Group directors\u2019 dealing since the start of 2021 to gain a better understanding of the concerns raised by some investors.<\/p>\n
The analysis showed only two types of trades since January 2021 \u2013 selling shares or buying shares via options.<\/p>\n
The table below shows all the non-option share trades by Purple Group directors over the last two years.<\/p>\n