Purple Group (PPE) is a trading platform and asset management company that is aimed mainly at the private investor and offers the cheapest costs of dealing in shares on the JSE.
The company has three divisions: (1) Easy Equities which enables investors to buy very small quantities of shares with very low dealing costs. For example, buying R100 worth of a share costs the investors just 64c. 95% of accounts opened are first-time investors and the company has 150 000 active investors. (2) Emperor Asset Management which manages funds on behalf of clients and (3) GT247, a derivatives trading platform.
On 18th May 2023 the company announced the finalisation of its rights issue to raise R105m and already had the support of more than 27% of its shareholders. Shareholders will be offered 10,20567 new shares for every 100 shares that they already hold at a price of 81c per share. The offer is at a 31,87% discount to the volume-weighted average price (VWAP) of the 7 days ending 16th May 2023.
In its results for the year to 31st August 2024 the company reported revenue up 45,1% and headline earnings per share (HEPS) of 1,77c compared with a loss of 2,05c in the previous year. The company said, "Year on year value added from August 2023 to August 2024: - Client assets increased by 24.8% to R58.2 billion (5 year CAGR: 45.4%) - Active retail clients increased by 10.4% to 991,320 (5 year CAGR: 66.4%) - Easy Group Revenue increased by 51.5% to 360.2 million (5 year CAGR: 54.6%)."
In a trading statement for the six months to 28th February 2025 the company estimated that HEPS will be between 2,29c and 2,44c compared with 0,78c in the previous period.
The share is well traded with an average with over R1m worth of shares changing hands daily on average. The share has made a "double top" formation at around 340c in the first half of 2022 and then fell until the beginning of March 2024. Since then it has been rallying.
We advised applying a 65-day exponentially smoothed moving average and waiting for an upward break – which occurred on 4th March 2024 at a price of 66c. It has since risen to 102c.
We believe it still has significant upside potential.
The company has three divisions: (1) Easy Equities which enables investors to buy very small quantities of shares with very low dealing costs. For example, buying R100 worth of a share costs the investors just 64c. 95% of accounts opened are first-time investors and the company has 150 000 active investors. (2) Emperor Asset Management which manages funds on behalf of clients and (3) GT247, a derivatives trading platform.
On 18th May 2023 the company announced the finalisation of its rights issue to raise R105m and already had the support of more than 27% of its shareholders. Shareholders will be offered 10,20567 new shares for every 100 shares that they already hold at a price of 81c per share. The offer is at a 31,87% discount to the volume-weighted average price (VWAP) of the 7 days ending 16th May 2023.
In its results for the year to 31st August 2024 the company reported revenue up 45,1% and headline earnings per share (HEPS) of 1,77c compared with a loss of 2,05c in the previous year. The company said, "Year on year value added from August 2023 to August 2024: - Client assets increased by 24.8% to R58.2 billion (5 year CAGR: 45.4%) - Active retail clients increased by 10.4% to 991,320 (5 year CAGR: 66.4%) - Easy Group Revenue increased by 51.5% to 360.2 million (5 year CAGR: 54.6%)."
In a trading statement for the six months to 28th February 2025 the company estimated that HEPS will be between 2,29c and 2,44c compared with 0,78c in the previous period.
The share is well traded with an average with over R1m worth of shares changing hands daily on average. The share has made a "double top" formation at around 340c in the first half of 2022 and then fell until the beginning of March 2024. Since then it has been rallying.
We advised applying a 65-day exponentially smoothed moving average and waiting for an upward break – which occurred on 4th March 2024 at a price of 66c. It has since risen to 102c.
We believe it still has significant upside potential.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.