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Author Topic: LC declining stock price: a signal?

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LC declining stock price: a signal?
OP: January 04, 2016, 12:00:00 AM
Besides the recent FED increases in the interest rates and LC adjustment, is there any known reason why the stock price of LC has gone down a lot in the last month? Is the market thinking that the quality of the loans is going to worsen so we will have more non-performing loans? Any theories?
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LC declining stock price: a signal?
#1: January 05, 2016, 12:00:00 AM
My theory is that the market doesn't understand the scale and momentum of the business, but I always think everyone else is irrational. ;)

The thing's worth $4/share in cash alone, so, I've been very comfortable buying at these levels - but I think that I understand the business.

We'll see...
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LC declining stock price: a signal?
#3: January 06, 2016, 12:00:00 AM
I'm waiting for it to level off first before I buy some, but I don't see any reason for the drops
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LC declining stock price: a signal?
#9: January 07, 2016, 12:00:00 AM
In case you missed this:

Podcast 54: Renaud Laplanche of Lending Club
The Lending Club CEO shares his thoughts on the last 12 months and what we can expect from Lending Club in 2016 and beyond.

http://www.lendacademy.com/podcast-54-renaud-laplanche-of-lending-club/

In this podcast you will learn:

His perspective on the past year and what has surprised him most.
* What Renaud has been working on specifically in the last 12 months.
* Lending Club’s approach to the large amount of cash on their balance sheet.
* How Lending Club is able to achieve decreasing customer acquisition costs.
* How the transition is going with their new Chief Risk Officer.
* Renaud’s view on the San Bernardino shooters and the Prosper loan.
* Their LCOI product and what it means for their focus on retail investors.
* The status of their small business lending operation and their plans to make these loans available to all investors.
* The kind of regulatory oversight that Lending Club sees today.
* Renaud’s thoughts on any potential new regulatory oversight.
* The new CFPB program for oversight on large consumer lenders.
* Where Lending Club stands on self-regulation today.
* His thoughts on his 4th annual keynote presentation at LendIt USA 2016.
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LC declining stock price: a signal?
#11: January 19, 2016, 12:00:00 AM
The best complaint that I've heard so far is:  "LC only cares about its lenders not its stockholders!"

I considered it to be a compliment dressed up as a complaint... ;)
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LC declining stock price: a signal?
#12: January 20, 2016, 12:00:00 AM
Recently opened an LC account and have been researching note investing and LC in general to get a better idea of risk.  The stock has tanked so much since its IPO that I am thinking about buying into it, so I have been trying to get an idea on where it might turn around.  I have read through a handful of threads to get a better idea but still wondering.  Any helpful thoughts would be great.

It was mentioned that LC has 4$/share cash, its actually 1.95, they have 738m cash and 378m shares.  There has been a lot of insider sales but most of it is options, I also kind of agree that its likely people cashing out now that they finally have the option to, before they couldn't because of the IPO.

There was a sharp drop midday today that looked odd with no news, not sure why.

Rating on NASDAQ are a strong buy, higher than most.  This along with the steady decline probably baffles me the most. :o  Price target 12 months out is 22.50 (16 to 25).

Financial statements looked good to me, steady increase in shareholder equity not counting the IPO jump.  Income does jump around a little but analyst feel it will increase.  I like the 1.95/share cash on hand, it gives them time to bring things around and gives real value to the stock. :)  Not sure how to predict future earnings per share and the right PE. ???

There was some debate on whether to consider LC a tech stock or financial.  I feel LC is a broker and should be considered a financial.  People can get credit cards on line and banks like Chase are considered financial.

I do think the IPO price was overvalued, I also understand the stock market right now is dropping with the very real possibility of major decline before it turns around.

With these thoughts maybe the thing to do is wait till the stock levels out for a period of time, just not sure it will level out or bounce right back up to some other level.  Any helpful input would be appreciated.
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