Lend Academy Network Forum

Lending Club Discussion => General Lending Club Discussion => Topic started by: Rob L on July 09, 2019, 10:41:54 AM

Title: LC Stock Does 5 for 1 Reverse Split
Post by: Rob L on July 09, 2019, 10:41:54 AM
As of yesterday 7/8/2019 LC implemented a 5 for 1 reverse stock split.
Owners now have one fifth the number of shares they owned the previous day.
The current price is $15.25 per share which would equal $3.05 per share (pre-reverse).

Might be a good thing as I seem to remember that many large mutual funds have rules against holding stock priced less that $10.00. I've been a bit more positive on the company since they announced they were moving 350 jobs to Utah. A much needed step in the right direction.
Title: Re: LC Stock Does 5 for 1 Reverse Split
Post by: Fred93 on July 09, 2019, 05:51:19 PM
Might be a good thing as I seem to remember that many large mutual funds have rules against holding stock priced less that $10.00.

See the holders (as of last quarter) here... https://finance.yahoo.com/quote/LC/holders?p=LC

I've reproduced the list of names of funds.  You can follow the link to see all the numbers.  These are the hugest index funds (excluding those which only invest in large cap companies).  There may still be funds with a $10 limit on share price, but the big index funds are apparently not among them.

Top Mutual Fund Holders
Vanguard Total Stock Market Index Fund   
Vanguard Small-Cap Index Fund   
ARK ETF Tr-ARK Innovation ETF   
iShares Russell 2000 ETF   
Vanguard Small-Cap Growth Index Fund   
Vanguard Extended Market Index Fund   
ARK ETF Tr-ARK Web x.0 ETF   
DFA U.S. Small Cap Series   
iShares Russell 2000 Value ETF   
Fidelity Extended Market Index Fund   

This also highlights a problem with the stock market these days.  Most of most companies are held by index funds who don't  have any interest in the details of a particular company's performance, management, etc.  To cover their asses, these institutions hire outside firms to tell them how to vote their shares.  The outside firms, who fear being fired due to some scandal more than anything, vote in the most politically correct fashion possible.  This is not a good way to run anything.


Quote
I've been a bit more positive on the company since they announced they were moving 350 jobs to Utah. A much needed step in the right direction.

I'd be more positive if they could make a profit and we saw growth opportunities.  (at the same time would be most excellent)

Title: Re: LC Stock Does 5 for 1 Reverse Split
Post by: Rob L on August 06, 2019, 08:46:36 PM
Well, for whatever reason they did a reverse 5:1 split; taking the shares above $10.
Certainly agree about making a profit! they aren't Amazon  :)
For the record I don't own their shares and can't imagine I ever will (again).
Title: Re: LC Stock Does 5 for 1 Reverse Split
Post by: rawraw on August 18, 2019, 04:11:27 PM
Fred, what do you mean profits? They make loans for less than a bank and will take over 😂
Title: Re: LC Stock Does 5 for 1 Reverse Split
Post by: Rob L on October 01, 2019, 05:07:59 PM
As of yesterday 7/8/2019 LC implemented a 5 for 1 reverse stock split.
Owners now have one fifth the number of shares they owned the previous day.
The current price is $15.25 per share which would equal $3.05 per share (pre-reverse).

Might be a good thing as I seem to remember that many large mutual funds have rules against holding stock priced less that $10.00. I've been a bit more positive on the company since they announced they were moving 350 jobs to Utah. A much needed step in the right direction.

Guess my "more positive" outlook was less than helpful. Sorry, I won't let that happen again; you must admit it was so unlike me. Today 10/1/2019 LC stock settled at a lifetime closing low of $12.48 per share, down -4.59% on the day. Its pre-reverse equivalent price would be $2.496 for those of us that remember. Since 9/16 when the stock closed at $15.09 the selling has been brutal. Down 7 of the past 9 days losing -17.3%. I dunno but it appears it's being beat down by bears mercilessly.

It was a rather lousy day for the stock market in general; the Dow was down -344 or -1.28%. Also a particularly lousy for bank stocks; KRE was down -2.25%, JPM -1.82% and GS -2.19%.
Title: Re: LC Stock Does 5 for 1 Reverse Split
Post by: rawraw on October 01, 2019, 06:44:00 PM
What multiple does LC trade at now?
Title: Re: LC Stock Does 5 for 1 Reverse Split
Post by: Rob L on October 01, 2019, 06:55:57 PM
Since they have no earnings then by definition they have no multiple; right?
Title: Re: LC Stock Does 5 for 1 Reverse Split
Post by: Fred93 on October 01, 2019, 07:47:02 PM
Right. The dashes below are MINUS signs.

LC Earnings...
2015 -$0.05 / share
2016 -$1.90 / share
2017 -$1.90 / share
2018 -$1.50 / share

2019Q1 -$0.25 / share
2019Q2 -$0.12 / share

Trailing 4 quarters total -$0.77 / share

The IPO provided them with lots of cash, which they have been slowly using, leaving the balance sheet still in pretty good shape.
Title: Re: LC Stock Does 5 for 1 Reverse Split
Post by: rawraw on October 02, 2019, 08:08:43 AM
Since they have no earnings then by definition they have no multiple; right?
If they don't have earnings you look at other multiples, like price to sales.
Title: Re: LC Stock Does 5 for 1 Reverse Split
Post by: Rob L on October 02, 2019, 06:44:03 PM
Today 10/2/2019 was another bad day for the overall stock market and even worse for LC. LC clocked in at another lifetime closing low of $11.91; down another -4.57%. It's is now at $2.382 per share pre-split. The Dow was down -494 or -1.86% so it was pretty bad all around. KRE was down -1.24%. Last May Jim Chanos announced he was short LC but declined to say at that time if he still held the position; he did not like the business model.

Given the dramatic movements of the past couple of weeks I think I'll wait a while to compute LC's multiple (of anything greater than zero). No doubt I'll miss the bottom whenever it occurs :)

And yes, their IPO provided them a lot of cash. The stock traded as high as $146.45 the week after the IPO in December 2014. If my chart is correct the stock opening IPO price was $123.75 (split adjusted) or $24.75 pre-split.