Sam Bankman-Fried Margin Called on Robinhood Stock.

well what do you know Sam bankman fraud

who's been released on bail to spend

time with Mommy and Daddy in Northern

California

apparently wasn't the Jerome Powell that

people thought he was this should be

obvious now after the collapse of the

fraud FTX but Sam bankman freed was

considered a hero when he came and

bought Robin Hood stock back in May of

2022. now Robin Hood has frequently been

trading for near their cash balance as

investors actually look at Robinhood and

think oh my gosh it's possible Robin

Hood could light more money on fire even

though they're trading close to their

cash balance they could light more money

on fire and lose even more investor

capital and the stock has been through

some heck of a roller coaster moving

from somewhere around seven bucks to as

low as six dollars and 81 cents in July

trying to move all the way up to about

12 and then right back to 771 where it

trades today an insane roller coaster

for Robin Hood stock but one of the

reasons people thought Robin Hood was

quite fascinating was because Sam begman

freed bought a lot of Robin Hood shares

he bought over 500 million dollars worth

of Robin Hood in May of 2022 taking a

7.6 stake in Robin Hood yet

unfortunately for Mr Sam bankman freed

also known as sandbankment fraud it

seems like he wasn't much of a Jerome

Powell because see Jerome Powell can

print money without borrowing it and

getting margin called unfortunately Sam

bankman freed actually ended up

borrowing money from Alameda to finance

his purchase of Robin Hood shares and

now the bankrupt firm blackfied

is suing Sam bankman freed for his Robin

Hood shares alleging that block fight is

owed the shares that uh that that Sam

Beekman freed bought because those

shares were pledged to block Phi to

guarantee that Alameda would follow

through on the deal with block five now

this is a really interesting twist

because it could put substantial selling

pressure on Robinhood because obviously

if blockfi is going through bankruptcy

and they're trying to survive that

bankruptcy if they can claw Sam bankman

Freed's Robin Hood shares which is

probably the only net worth

sandbagmatfried has left if he could if

if a blockfi can take those shares it's

very likely that blockify would dump

those shares on the market probably not

through a Robin Hood kind of platform

probably through a wall street block

trade but the point is there'd be a

substantial increase in the amount of

share is available for sale for Robin

Hood and you can see a substantial shift

down in Robinhood share price now that

could be good news for Block fi as that

money would then go to try to help bail

block fight out but this is a very

interesting allegation that all of a

sudden you have

blockify suggesting that Sam bankman

freed borrowed the money from Alameda

via four personal promissory notes

in order for him to buy shares of Robin

Hood now when we look at the

fundamentals of Robin Hood they're the

biggest red flag that you have is that

Robin Hood makes money from Trading

right and when Robin Hood makes money

from Trading

it wants to see people trade more

problem is when you go into a recession

people tend to do one of two things they

capitulate sell out and sit on the

sidelines and usually they miss the

recovery

or they huddle stop trading altogether

because they're frustrated by the market

they stick their heads in the sand maybe

occasionally add by buying the dip

potentially by using Diversified

actively managed ETFs or index funds or

whatever and you don't actually see much

trading activity so you have some really

big red flags for trading for investing

in brokerages like Robinhood so from a

fundamental point of view that's a big

concern now some other things that you

have here is uh well and I do want to

see you or say here you could see

transactions plummeting right look at

this transactions down 22.1 percent or

transaction Revenue down 22.1 percent

from the three months ending September

30th 2021 to 2022. it's a big hit now

they are seeing a nice move up in

interest revenues however Robin Hood is

kind of playing a race to the top game

with to compete against companies like

Sofi and wealth front because Robin Hood

is now offering to pay somewhere over

3.7 I think it actually is 3.75 on your

cash that you have deposited with

Robinhood and I think wealthfront is now

a little over four percent so you've got

a lot of big yield opportunities you're

fighting with but that's going to in my

opinion decrease the net interest

revenues for Robinhood as they start

coming out with these new products

pitching hey we're gonna offer you a

larger uh interest rate on your savings

with Robinhood now remember Vlad tennev

actually came on the channel here to

pitch that they were going to offer a

higher yield on their interest bearing

accounts so their checking accounts over

at Robinhood basically uh and uh they

announced this on September 23rd which

you'll notice September 23rd is actually

a week before the end of this quarter so

in my opinion the net interest revenues

for Robinhood are probably going to go

down because they went from paying

virtually nothing to paying

3.75 percent so I would not be surprised

to see their transaction revenues

plummet and their net interest revenues

plummet now the good news for Robinhood

is they are trying to cut spending look

at this their technology and development

sector they used they spent 679 million

in 2021 in the third quarter only 185

here in the third quarter they're still

losing money but only 20 cents could you

imagine Robin Hood At profitability I

don't know when that net interest

Revenue goes down probably not but

otherwise they almost got close to

profitability here and that's why I

wrote imagine Robin Hood At

profitability but again this is a big

red flag because of those net interest

revenues I think there are going to come

plummeting down so uh again you'd have

to cut substantially here and you'd

still be sitting in in a negative

situation unfortunately these are some

notes that I took in my course member

live stream with course members we often

do fundamental analysis if you want to

join in those fun fundamental analysis

check out the programs on building your

wealth link down below there's a coupon

code expiring on the 27th of December

including the shadow Kevin for a Day

Option but anyway initially I believe

that in terms of user growth and I still

believe this the 3.75 will help a lot

it's kind of like free marketing but

unfortunately that free marketing is

going to come with the downside that

their net interest revenue is going to

decline so even if you were able to cut

a little bit more expenses over here and

you were able to bring them to

profitability which you're not exactly

close to that right now right you have

174 million dollars of cuts you have to

do that's like even if you had zero net

interest Revenue you you'd still be in a

or I'm sorry let me put it this way if

you doubled your net interest Revenue

you would still be at a loss at Revenue

so I I don't think you're gonna or you

know a loss of income so I don't think

you're going to be at profitability

anytime soon for Robinhood so

unfortunately when it comes to Robinhood

stock I think you have quite a few

negative cash fabulous ahead of you a I

think that Sam bakeman fraud Shares are

probably going to get Plum pummeled onto

the market through bankruptcy hearings

and you could see Robin Hood go to three

dollars and fifty cents or potentially

even less I hate to say it but but that

selling pressure is going to be huge on

top of that in the next earnings report

you're probably going to see net

interest revenues plummet potentially as

low as uh I I would guess

a lower level than what we had over here

when they were at 63 million I hate to

say but it could probably go below that

it would be odd for it to go up because

I don't know how they would be paying

out while still farming these these high

yields it would really be dependent on

users just for some reason not signing

up for those higher yields of course

that's Robin Hood's play is that more

people sign up for those higher yields

they pay five bucks a month and then

maybe they'll start making money off of

the five bucks a month but let's be real

the five bucks a month belongs over here

in the other section of Revenue and the

other section of Revenue is on a

downtrend they were at 35 mil in other

rev now they're sitting at 25. so it's

just looking a little gloomy for Tesla

or not Tesla Tesla's looking really

gloomy today that sucker's down like 11

it's just looking really gloomy for

Robin Hood from a fundamental point of

view whereas things are actually

fundamentally looking great for Tesla

it's just going through

hell that's all I that's that's all I

could describe that is it is the most

amount of paper handing ever anyway

luck out there hope you appreciate some

fundamentals because one day they'll

come true

#not guaranteed my opinion only thanks

bye