LC

LendingClub Corp

Finance/Real Estate


Presented:03/11/2015
Price:$19.55
Cap:$7.27B
Current Price:$13.27
Cap:$1.48B

Presented

Date03/11/2015
Price$19.55
Market Cap$7.27B
Ent Value$0.01B
P/E RatioN/A
Book Value$2.62
Div YieldN/A
Shares O/S371.99M
Ave Daily Vol4,000,000
Short Int3.68%

Current

Price$13.27
Market Cap$1.48B
LendingClub Corporation operates as an online marketplace for connecting borrowers and investors in the United States. Its marketplace facilitates various types of loan products for consumers and small businesses, including unsecured personal loans, super prime consumer loans, unsecured education and patient finance loans, and unsecured small business loans. The company also offers investors an opportunity to invest in a range of loans based on term and credit characteristics. It serves investors, such as retail investors, high-net-worth individuals and family offices, banks and finance companies, insurance companies, hedge funds, foundations, pension plans, and university endowments. The company was founded in 2006 and is headquartered in San Francisco, California.

Publicly traded companies mentioned herein: LendingClub Corporation (LC)

Highlights

LendingClub (LC) recently came public (December, 2014) and received a warm welcome from investors; however, the presenter is short LC at present levels ($19 - $20), and believes the business faces many challenges, including high default rates and the risk of losing lenders over time due to returns that fall short of expectations. “The platform is great for borrowers, but of questionable value to lenders,” he said. These issues are likely to temper enthusiasm and pressure the stock price over coming quarters, in his opinion.

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Idea Discussion

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