Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: rrsafety on December 11, 2014, 10:14:38 AM

Title: STOCK PRICE TALK: Opened at $24.75
Post by: rrsafety on December 11, 2014, 10:14:38 AM
Renton on Twitter:
The open for @LendingClub is indicated
at $20 - $22 #lendingclubipo open for
trading very soon
Title: Re: OPEN: $20-$22 ?
Post by: Theta on December 11, 2014, 10:16:21 AM
indication now 21-23
Title: Re: OPEN: $20-$22 ?
Post by: Kombinator on December 11, 2014, 10:17:14 AM
where are you guys seeing this?
Title: Re: OPEN: $20-$22 ?
Post by: Theta on December 11, 2014, 10:17:45 AM
search "$LC" in twitter
Title: Re: OPEN: $20-$22 ?
Post by: LoanWolf on December 11, 2014, 10:20:57 AM
$22-24 says CNBC
Title: Re: OPEN: $20-$22 ?
Post by: rrsafety on December 11, 2014, 10:28:54 AM
Peter Renton
‏@LendAcademy

The excitement is building here. $LC now indicated $22-$24. Holy cow! #lendingclubipo @LendingClub
Title: Re: OPEN: $20-$22 ?
Post by: Theta on December 11, 2014, 10:30:01 AM
did it just open at 24 ?
Title: Re: OPEN: $20-$22 ?
Post by: Theta on December 11, 2014, 10:31:10 AM
no open yet.  Indicated at 23-25 now.
Title: Re: OPEN: $20-$22 ?
Post by: yojoakak on December 11, 2014, 10:31:14 AM
Did Laplanche get to ring the bell?

Where can I find a pic?

UPDATE: Here you go, skip ahead to 3:30

http://new.livestream.com/NYSE/lendingclub
Title: Re: UPDATED: Open at $22-$24 ??
Post by: rrsafety on December 11, 2014, 10:33:15 AM
Now $23-25
Title: Re: UPDATED: Open at $22-$24 ??
Post by: Fred on December 11, 2014, 10:34:46 AM
The US stock market just had a 3-day selloff, so traders are hungry today.
Title: Re: OPEN: $20-$22 ?
Post by: rrsafety on December 11, 2014, 10:37:10 AM
Did Laplanche get to ring the bell?

Where can I find a pic?

UPDATE: Here you go, skip ahead to 3:30

http://new.livestream.com/NYSE/lendingclub


(https://pbs.twimg.com/media/B4lVIbLCIAE36lt.jpg:large)
https://pbs.twimg.com/media/B4lVIbLCIAE36lt.jpg:large
Title: Re: UPDATED: Open at $23-$25 ??
Post by: core on December 11, 2014, 10:40:53 AM
Unfortunately I don't see Stephanie in that photo.  The guy in the back looks like he got into the sauce a bit early this morning. 
Title: Re: UPDATED: Open est. at $23-$25 ??
Post by: Theta on December 11, 2014, 10:41:37 AM
Opens at 24.75.  5,759,264 shares
Title: Re: UPDATED: Open est. at $23-$25 ??
Post by: stanny2 on December 11, 2014, 10:41:58 AM
Out at $25....maybe a fool for not letting it ride, but been burned before acting greedy.
Title: Re: UPDATED: Open est. at $23-$25 ??
Post by: Fred on December 11, 2014, 10:44:23 AM
From CNBC as of 10:42 EST:

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi.imgur.com%2FxwKQRXj.png&hash=751e5f92e0c232b82edf7384ce515799)
Title: Re: UPDATED: Opened at $24.75
Post by: Booleans on December 11, 2014, 10:45:38 AM
I have no idea if I should stay in or get out.
Title: Re: UPDATED: Opened at $24.75
Post by: rrsafety on December 11, 2014, 10:46:54 AM
I have no idea if I should stay in or get out.

I'd get out.
Title: Re: UPDATED: Opened at $24.75
Post by: Fred on December 11, 2014, 10:49:26 AM
I have no idea if I should stay in or get out.

Put a trailing–stop order. ;-)
Title: Re: UPDATED: Opened at $24.75
Post by: Booleans on December 11, 2014, 10:50:29 AM
I can't even sell because it's telling me it can't find the shares in my account.
Title: Re: UPDATED: Opened at $24.75
Post by: Unfolder on December 11, 2014, 10:51:26 AM
Not bad for a day's work, fue fue fue  ;D
Title: Re: UPDATED: Open est. at $23-$25 ??
Post by: ggnoob1337 on December 11, 2014, 10:52:47 AM
Out at $25....maybe a fool for not letting it ride, but been burned before acting greedy.

I got out at 24.40. This was much more of a gain than I was even hoping for. Now back to index funds.
Title: Re: UPDATED: Opened at $24.75
Post by: yojoakak on December 11, 2014, 10:55:25 AM
Check out the bid offer order book. Not too many 350 share  lots in there.

http://finance.yahoo.com/q/ecn?s=LC
Title: Re: UPDATED: Opened at $24.75
Post by: jpildis on December 11, 2014, 10:55:31 AM
I put a $1 trailing stop order in when it was 24.60 and it triggered 5 minutes later... out at 23.60. Very happy!!
Title: Re: UPDATED: Opened at $24.75
Post by: brycemason on December 11, 2014, 10:57:38 AM
I have to admit, greed is a powerful force and I wanted to hang around to see what happened. But, in the end, even the $23.57 I got was far, far higher than my expectations. I'm out on that valuation and will buy back in if we see reasonable valuations in the future.
Title: Re: UPDATED: Opened at $24.75
Post by: yaoyao on December 11, 2014, 10:58:23 AM
Out at $23.86.  Should've researched trading platform in fidelity earlier.  Couldn't find the trade button in fidelity in time, otherwise, would be out at $24.90.  Oh, well, good $2000 gain.
Title: Re: UPDATED: Opened at $24.75
Post by: thezfunk on December 11, 2014, 11:02:07 AM
I only got 250 shares.  Just now I can see them in my account.
Title: Re: UPDATED: Opened at $24.75
Post by: dannybermuda on December 11, 2014, 11:02:23 AM
CONGRATS TO ALL
Title: Re: UPDATED: Opened at $24.75
Post by: Unfolder on December 11, 2014, 11:02:59 AM
Am going down with the ship, will not sell even at $0. Bagholder to the end!  8)
Title: Re: UPDATED: Opened at $24.75
Post by: lukkertin on December 11, 2014, 11:03:10 AM
Well, that was the easiest $2400 I've ever made
Title: Re: UPDATED: Opened at $24.75
Post by: nlagaros on December 11, 2014, 11:06:20 AM
I got out at $25.  Thanks LendingClub!
Title: Re: UPDATED: Opened at $24.75
Post by: JoeB on December 11, 2014, 11:06:27 AM
Out at $24.93 - Thank you Lending Club! It's a days pay.
Title: Re: UPDATED: Opened at $24.75
Post by: rockinray on December 11, 2014, 11:07:18 AM
I got out at $23... Greed is a terrible thing!   8)
Title: Re: UPDATED: Opened at $24.75
Post by: WES on December 11, 2014, 11:09:58 AM
Well, that certainly improved the XIRR  ;D
Title: Re: UPDATED: Opened at $24.75
Post by: mindbowels on December 11, 2014, 11:12:05 AM
Those of you who are able to sell, are you using the DSP?

Many of us are getting errors, is it only those of us who already had other Fidelity accounts I wonder?
Title: Re: UPDATED: Opened at $24.75
Post by: rawraw on December 11, 2014, 11:15:07 AM
I have no idea if I should stay in or get out.

Put a trailing–stop order. ;-)
Appreciate that man.  Exactly what I did.  If my order executes, I get roughly 50 free shares of LC.  And I'll let them do whatever.  It may limit my take home, but greed is a dangerous thing ha ha
Title: Re: UPDATED: Opened at $24.75
Post by: core on December 11, 2014, 11:23:33 AM
Am going down with the ship, will not sell even at $0. Bagholder to the end!  8)

Haha Unfolder you're an entertaining one.  I'm rooting for you, I really am.  And for everyone else who's still long.
Title: Re: UPDATED: Opened at $24.75
Post by: thezfunk on December 11, 2014, 11:58:11 AM
I should hang onto a couple shares so that I can start all my posts on here "As part owner of Lending club, I think..."

It will give my opinions more weight (not really).  As an owner, can I call up customer service and demand changes we have all been complaining about forever?  Can I call up Stephanie and demand she stop intentionally harassing Core every chance she gets?
Title: Re: UPDATED: Opened at $24.75
Post by: cs1725 on December 11, 2014, 12:03:34 PM
Those of you who are able to sell, are you using the DSP?

Many of us are getting errors, is it only those of us who already had other Fidelity accounts I wonder?

No.  I opened a new account and get errors on sell orders as well.  Claims I have no LC holdings, yet they are visible in the account.  It appears the IPO purchase remains unsettled even though the account was funded.
Title: Re: UPDATED: Opened at $24.75
Post by: mo on December 11, 2014, 12:05:05 PM
Those of you who are able to sell, are you using the DSP?

Many of us are getting errors, is it only those of us who already had other Fidelity accounts I wonder?

Did you already have the cash in your account to pay for the shares?  If the transaction hasn't settled yet they aren't going to let you sell the shares before you've paid.
Title: Re: UPDATED: Opened at $24.75
Post by: yaoyao on December 11, 2014, 12:11:13 PM
Those of you who are able to sell, are you using the DSP?

Many of us are getting errors, is it only those of us who already had other Fidelity accounts I wonder?

Did you already have the cash in your account to pay for the shares?  If the transaction hasn't settled yet they aren't going to let you sell the shares before you've paid.

I was afraid that they wouldn't let me sell because I just did ACH transaction this morning and it still shows pending.  However, I was able to sell my shares.
Title: Re: UPDATED: Opened at $24.75
Post by: splat313 on December 11, 2014, 12:12:00 PM
Those of you who are able to sell, are you using the DSP?

Many of us are getting errors, is it only those of us who already had other Fidelity accounts I wonder?

Did you already have the cash in your account to pay for the shares?  If the transaction hasn't settled yet they aren't going to let you sell the shares before you've paid.

This is not true.  You can sell shares before the buy transaction has settled.  I have an unfunded Fidelity account and sold my 250 shares with no problems this morning
Title: Re: UPDATED: Opened at $24.75
Post by: jbfru45 on December 11, 2014, 12:16:16 PM
Those of you who are able to sell, are you using the DSP?

Many of us are getting errors, is it only those of us who already had other Fidelity accounts I wonder?

Did you already have the cash in your account to pay for the shares?  If the transaction hasn't settled yet they aren't going to let you sell the shares before you've paid.

This is not true.  You can sell shares before the buy transaction has settled.  I have an unfunded Fidelity account and sold my 250 shares with no problems this morning

I had an issue as well. The website showed shares in the account, but when I tried to sell it said they weren't there. The rep claimed that the website did not recognize the shares for trading because they showed up in the account after the market opened. I had to call them to sell my shares at $23 even though I tried to sell online at $25. All they would do is waive the transaction fee  >:(
Title: Re: UPDATED: Opened at $24.75
Post by: RBDK on December 11, 2014, 12:17:16 PM
I tried to sell while the price was above $25, but kept receiving errors.  I kept trying and was eventually able to sell my shares at $23.40.  I'm pretty disappointed, but I didn't have a whole lot of shares, so the loss was minimal.
Title: Re: UPDATED: Opened at $24.75
Post by: Booleans on December 11, 2014, 12:19:26 PM
My error seemed to be occurring when I selected "Sell All Shares" instead of just saying sell and typing in 250 shares.
Title: Re: UPDATED: Opened at $24.75
Post by: avid investor on December 11, 2014, 12:20:15 PM
So, all of you folks that are anxious to sell and take a quick profit, why not at least wait the 3 weeks until 1/1/2015?  Sell now, and you not only will pay income tax at regular income rates, you also will get to pay that with your 2014 taxes.  At least if you wait until 1/1, you won't have to pay until 4/15/2016.  Of course, if you wait until 12/11/2015, you can pay at the capital gains rate, too, rather than the regular rate.  Just something to think about.
Title: Re: UPDATED: Opened at $24.75
Post by: lukkertin on December 11, 2014, 12:22:05 PM
So, all of you folks that are anxious to sell and take a quick profit, why not at least wait the 3 weeks until 1/1/2015?  Sell now, and you not only will pay income tax at regular income rates, you also will get to pay that with your 2014 taxes.  At least if you wait until 1/1, you won't have to pay until 4/15/2016.  Of course, if you wait until 12/11/2015, you can pay at the capital gains rate, too, rather than the regular rate.  Just something to think about.

My marginal tax rate next year is going to be higher than this year. even if it weren't, I'd rather pay tax on $2400 of gains than less tax on unguaranteed amount of gains, which could even be a loss. One in the hand is better than two in the bush.
Title: Re: UPDATED: Opened at $24.75
Post by: avid investor on December 11, 2014, 12:24:11 PM
So, all of you folks that are anxious to sell and take a quick profit, why not at least wait the 3 weeks until 1/1/2015?  Sell now, and you not only will pay income tax at regular income rates, you also will get to pay that with your 2014 taxes.  At least if you wait until 1/1, you won't have to pay until 4/15/2016.  Of course, if you wait until 12/11/2015, you can pay at the capital gains rate, too, rather than the regular rate.  Just something to think about.

My marginal tax rate next year is going to be higher than this year. even if it weren't, I'd rather pay tax on $2400 of gains than less tax on unguaranteed amount of gains, which could even be a loss. One in the hand is better than two in the bush.
Yeah I know, but when it comes to taxes, the rule has always been "defer, defer, defer."  I'd rather use the 40% for another year, and invest it.  By 4/2016, it will be worth a lot more.
Title: Re: UPDATED: Opened at $24.75
Post by: lukkertin on December 11, 2014, 12:28:24 PM
Yeah I know, but when it comes to taxes, the rule has always been "defer, defer, defer."  I'd rather use the 40% for another year, and invest it.  By 4/2016, it will be worth a lot more.

You don't even know if you'll have that 40% to invest come next year.
Title: Re: UPDATED: Opened at $24.75
Post by: avid investor on December 11, 2014, 12:29:39 PM
Yeah I know, but when it comes to taxes, the rule has always been "defer, defer, defer."  I'd rather use the 40% for another year, and invest it.  By 4/2016, it will be worth a lot more.

You don't even know if you'll have that 40% to invest come next year.
Talking about the 40% that income taxes will take, bro.  That will be gone by 4/2015.  If I have $1 more than that after April, I am ahead of where I would otherwise be.
Title: Re: UPDATED: Opened at $24.75
Post by: Booleans on December 11, 2014, 12:34:51 PM
Yeah I know, but when it comes to taxes, the rule has always been "defer, defer, defer."  I'd rather use the 40% for another year, and invest it.  By 4/2016, it will be worth a lot more.

You don't even know if you'll have that 40% to invest come next year.
Talking about the 40% that income taxes will take, bro.  That will be gone by 4/2015.  If I have $1 more than that after April, I am ahead of where I would otherwise be.

If your Federal bracket is the 39.6% bracket then you're making over $400,000/yr if you're single. And yet you're still willing to risk a loss to put off $1500 in taxes to the next year?
Title: Re: UPDATED: Opened at $24.75
Post by: avid investor on December 11, 2014, 12:41:18 PM
Yeah I know, but when it comes to taxes, the rule has always been "defer, defer, defer."  I'd rather use the 40% for another year, and invest it.  By 4/2016, it will be worth a lot more.

You don't even know if you'll have that 40% to invest come next year.
Talking about the 40% that income taxes will take, bro.  That will be gone by 4/2015.  If I have $1 more than that after April, I am ahead of where I would otherwise be.

If your Federal bracket is the 39.6% bracket then you're making over $400,000/yr if you're single. And yet you're still willing to risk a loss to put off $1500 in taxes to the next year?
First, this stock isn't going to tank.  It may not "take off" like FB did, but it will hold ok.  Second, I don't just pay Fed taxes.  My state, like most these days, charges me, too.  Duh.
Title: Re: UPDATED: Opened at $24.75
Post by: yojoakak on December 11, 2014, 12:49:39 PM
So, all of you folks that are anxious to sell and take a quick profit, why not at least wait the 3 weeks until 1/1/2015?  Sell now, and you not only will pay income tax at regular income rates, you also will get to pay that with your 2014 taxes.  At least if you wait until 1/1, you won't have to pay until 4/15/2016.  Of course, if you wait until 12/11/2015, you can pay at the capital gains rate, too, rather than the regular rate.  Just something to think about.

If the price drops can I buy it back and avoid paying taxes on it (wash sale)? Or is that just for losses?
Title: Re: UPDATED: Opened at $24.75
Post by: kitono on December 11, 2014, 01:09:55 PM
Unfortunately I was only given 150 shares but I got out at $25  8)
Title: Re: UPDATED: Opened at $24.75
Post by: TonySaunders on December 11, 2014, 01:42:54 PM
Someone with experience, help me out here:

I got 250 shares. I don't know much about investing in stocks directly and I want to sell them.

I transferred money to my Fidelity account, but the transfer isn't final yet. Can I sell the shares immediately without invoking a "Good Faith Violation"? And what are the consequences of that, anyway?
Title: Re: UPDATED: Opened at $24.75
Post by: Half Right on December 11, 2014, 02:04:06 PM
tes you can sell immediately.

You can use the Capital gain on the sale to offset the capital losses caused by LC write offs of investors notes. Its a win win
Title: Re: UPDATED: Opened at $24.75
Post by: Unfolder on December 11, 2014, 03:13:04 PM
I'm taking out a 35000 dollar loan to buy LC shares fue fue fue
Title: Re: UPDATED: Opened at $24.75
Post by: PennySaved on December 11, 2014, 03:40:34 PM
I'm taking out a 35000 dollar loan to buy LC shares fue fue fue

Will this be a LC loan?
Title: Re: UPDATED: Opened at $24.75
Post by: Dna2rna on December 11, 2014, 05:00:45 PM
For all the people that were getting the error message.

I was as well when trying "sell all shares" option on the order screen.  If instead you type in 250 shares it went through
Title: Re: UPDATED: Opened at $24.75
Post by: rawraw on December 11, 2014, 07:11:20 PM
I'm taking out a 35000 dollar loan to buy LC shares fue fue fue
You are a very entertaining troll.  Hopefully you can stay creative ha ha
Title: Re: UPDATED: Opened at $24.75
Post by: core on December 11, 2014, 08:03:32 PM
Can I sell the shares immediately without invoking a "Good Faith Violation"? And what are the consequences of that, anyway?

There are no real consequences of even multiple GF violations here since this is a temporary account and you will not need buying privileges in it. 
Title: Re: UPDATED: Opened at $24.75
Post by: Fred on December 11, 2014, 10:19:38 PM
At least if you wait until 1/1, you won't have to pay until 4/15/2016.

You also risk getting a loss if LC shares go below $15 by 1/1.
Title: Re: UPDATED: Opened at $24.75
Post by: VirginiaBob on December 12, 2014, 04:15:21 AM
At least if you wait until 1/1, you won't have to pay until 4/15/2016.

You also risk getting a loss if LC shares go below $15 by 1/1.

I'd assume by not selling, he meant he is holding but with a stop loss order at $20-$22 per share.  That is what I did - I have a stop loss at $22 a share.  If the price dives, I get $1,750.  If it rises, my trailing stop loss rises and my profits increase.  My guess is that performance will be really good until the 180 lock-up period is over.  Then, inevitably, lots of lower level employees will sell for profits.
Title: Re: UPDATED: Opened at $24.75
Post by: avid investor on December 12, 2014, 08:33:08 AM
At least if you wait until 1/1, you won't have to pay until 4/15/2016.

You also risk getting a loss if LC shares go below $15 by 1/1.

I'd assume by not selling, he meant he is holding but with a stop loss order at $20-$22 per share.  That is what I did - I have a stop loss at $22 a share.  If the price dives, I get $1,750.  If it rises, my trailing stop loss rises and my profits increase.  My guess is that performance will be really good until the 180 lock-up period is over.  Then, inevitably, lots of lower level employees will sell for profits.

Exactly Bob.  Guess we fellow Virginians get it.  So many here were whooping and hollering about making $2k by buying 250 shares at $15.  But selling immediately means it is really only worth about $1200 because the Fed and State will be holding their hands out right away.  Not saying I will hold long term, but I do believe that the stock is stable enough to ride out a few weeks.  It might even go up.
Title: Re: UPDATED: Opened at $24.75
Post by: rrsafety on December 12, 2014, 09:33:58 AM
LC up a bit on the open.
Title: STOCK PRICE TALK: Opened at $24.75
Post by: BruiserB on December 12, 2014, 11:05:56 AM

At least if you wait until 1/1, you won't have to pay until 4/15/2016.

You also risk getting a loss if LC shares go below $15 by 1/1.

I'd assume by not selling, he meant he is holding but with a stop loss order at $20-$22 per share.  That is what I did - I have a stop loss at $22 a share.  If the price dives, I get $1,750.  If it rises, my trailing stop loss rises and my profits increase.  My guess is that performance will be really good until the 180 lock-up period is over.  Then, inevitably, lots of lower level employees will sell for profits.

Exactly Bob.  Guess we fellow Virginians get it.  So many here were whooping and hollering about making $2k by buying 250 shares at $15.  But selling immediately means it is really only worth about $1200 because the Fed and State will be holding their hands out right away.  Not saying I will hold long term, but I do believe that the stock is stable enough to ride out a few weeks.  It might even go up.

Haven't decided whether to sell yet, but am considering it since my losses through defaults in my Lending Club account are Capital Losses that can be written off against short term Capital Gains.  I'd rather have defaults wipe out short term gains than lower taxed long term gains.  So I may either sell this month or wait till early next year to be used against next year's defaults.


Sent from my iPhone using Tapatalk
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: Unfolder on December 12, 2014, 12:18:19 PM
LC showing resilience on a down day, I like it. How long will we get an irrational exuberance premium?  :P
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: VirginiaBob on December 12, 2014, 12:26:31 PM
I'd rather have my defaults give me a $3,000 tax deduction than have those losses wiped out by offsetting them against the gains sale of LC stock.

Why sell instead of just utilizing a trailing stop loss order?  Do you live paycheck to paycheck and absolutely need the money right now?  Not me, I plan for the future.

The way I see it is that on Dec 10th, I made the decision to risk $3,750 on this company.  A lot of people were saying to pass on this loser IPO since it was overvalued at $15 (versus the original $10-$12 range, which was still overvalued).  I disagreed and stood by this company.
On Dec 11th, after open, I put in a stop loss order at $22.00, locking in the original $3,750 I risked plus an additional $1,750 of profits.  So the only money left that I am risking is additional money gained.  Currently the share price is about $24.50, so I am only risking 250 x (24.50-22) = $625 of found money.  If I was willing to risk $3750 of my own hard earned money on this company, I certainly have no problem risking $650 of found money.

I'd suggest being patient and putting in an appropriate stop loss order unless you need the money right now.
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: brycemason on December 12, 2014, 12:36:29 PM
I'm happy for people who are enjoying the ride, but I have to think that LC wouldn't willingly let so much money stay on the table. Why not have $1.5B or $2B in the coffers? The underwriters probably had some of the best people in the business trying to value the company and put a fair price tag on it. That's $15, up given the significant investor interest. With a +60% valuation in one day, so much future growth is baked in that I don't at all blame people who got out at the open. It could stay there for months; it could drop down tomorrow. It's impossible to say. Unrealized gains are opinions.
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: VirginiaBob on December 12, 2014, 12:39:04 PM
I'm happy for people who are enjoying the ride, but I have to think that LC wouldn't willingly let so much money stay on the table. Why not have $1.5B or $2B in the coffers? The underwriters probably had some of the best people in the business trying to value the company and put a fair price tag on it. That's $15, up given the significant investor interest. With a +60% valuation in one day, so much future growth is baked in that I don't at all blame people who got out at the open. It could stay there for months; it could drop down tomorrow. It's impossible to say. Unrealized gains are opinions.

Gains supported by stop loss order are not opinions though.  They are pretty much locked in +/- fractions of a percent.  Anyways, another +5% day!  Bump up my stop loss slightly and lock in again.
Title: STOCK PRICE TALK: Opened at $24.75
Post by: BruiserB on December 12, 2014, 01:15:29 PM
I'd rather have my defaults give me a $3,000 tax deduction than have those losses wiped out by offsetting them against the gains sale of LC stock.

Why sell instead of just utilizing a trailing stop loss order?  Do you live paycheck to paycheck and absolutely need the money right now?  Not me, I plan for the future.

The way I see it is that on Dec 10th, I made the decision to risk $3,750 on this company.  A lot of people were saying to pass on this loser IPO since it was overvalued at $15 (versus the original $10-$12 range, which was still overvalued).  I disagreed and stood by this company.
On Dec 11th, after open, I put in a stop loss order at $22.00, locking in the original $3,750 I risked plus an additional $1,750 of profits.  So the only money left that I am risking is additional money gained.  Currently the share price is about $24.50, so I am only risking 250 x (24.50-22) = $625 of found money.  If I was willing to risk $3750 of my own hard earned money on this company, I certainly have no problem risking $650 of found money.

I'd suggest being patient and putting in an appropriate stop loss order unless you need the money right now.

Normally I end each year with a fair amount of long term capital gains and almost no short term capital gains.  This is because I invest mostly in mutual funds that distribute long term gains or sell only stocks that I've held more than a year.  This income is taxed at long term rates....I can't remember if it is 15 or 20%.

The defaults I have on Lending Club end up offsetting these capital gains each year as they are considered capital losses.  Therefore it offsets income that would only be taxed at 15 or 20% rather than income that is taxed at my normal marginal rate.  Therefore I still end up paying tax at my full marginal rate on my earned income as well as on the interest I earn from Lending Club notes and I reduce the income I make that would normally be taxed at a lower rate.....so it decreases my long term capital gains.

My only point was now I have this windfall short term capital gain that I could use to offset my defaults.  Lending Club defaults can be written off against Short Term gains first, then Long Term gains, then Ordinary income up to $3000 per year.  If I were to take my Short Term gain now, I could write my losses off against it and preserve more of my Lower-Taxed Long-Term gains.  Or I could sell in early January and do this next year.

If one thinks that there is still considerable upside in Lending Club, then as you say it would be best to hold tight.  I'm just not sure how much of the price now is actually justified and how much is irrational exuberance over a "new" web/financial company.  That's why I'm thinking about selling.

If you have no capital gains each year, then you are right, your losses go against your normal income and reduce your taxable income up to $3000.  I have more than $3000 in yearly defaults and have a fair amount of long term capital gains that would be wiped out by my defaults.  In my case it might make sense to take the money and run from the IPO.  It's not at all a matter of living paycheck to paycheck....it's a matter of being a sound financial decision.  Also there's nothing unique about using my Lending Club IPO gains to do this....I could do the same with any other Short Term held stock....it's just that I don't have any.


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Title: Re: UPDATED: Opened at $24.75
Post by: Fred on December 12, 2014, 01:47:20 PM
At least if you wait until 1/1, you won't have to pay until 4/15/2016.

You also risk getting a loss if LC shares go below $15 by 1/1.

I'd assume by not selling, he meant he is holding but with a stop loss order at $20-$22 per share.  That is what I did - I have a stop loss at $22 a share.  If the price dives, I get $1,750.  If it rises, my trailing stop loss rises and my profits increase.  My guess is that performance will be really good until the 180 lock-up period is over.  Then, inevitably, lots of lower level employees will sell for profits.

I thought this is more about tax & timing issues.

If your stop loss order gets executed before 12/31, forget about waiting until 4/15/2016.
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: Fred on December 12, 2014, 01:54:09 PM
I'd rather have my defaults give me a $3,000 tax deduction than have those losses wiped out by offsetting them against the gains sale of LC stock.

Many investors in this Forum maintain 6- and 7-digit LC portfolio; we have to deal 2014 defaults that are much more than $3K.  Any attempt to lower it is money in the bank.
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: rocco.g on December 12, 2014, 10:28:19 PM
Gains supported by stop loss order are not opinions though.  They are pretty much locked in +/- fractions of a percent.  Anyways, another +5% day!  Bump up my stop loss slightly and lock in again.

Stop loss orders are only good while the market is open.  For some reason really bad news always seems to come out when the market is closed, then the stock opens up the next day down double digit %.  Or if bad news is released during the day and one of the new limiters on the market is hit and halts trading, your order might not get processed.  Your stop loss order does not protect you from these really bad scenarios, it only is useful when the stock is following a slow downward path and you want to get out if it doesn't turn around.  Until you sell, your gain is only on paper.  I am not saying I think one of these horrible scenarios is going to happen to Lending Club, but I thought I would chime in with clarification on how a stop loss order works so people do not get the misconception that it locks in their profit.
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: VirginiaBob on December 12, 2014, 10:39:36 PM
Gains supported by stop loss order are not opinions though.  They are pretty much locked in +/- fractions of a percent.  Anyways, another +5% day!  Bump up my stop loss slightly and lock in again.

Stop loss orders are only good while the market is open.  For some reason really bad news always seems to come out when the market is closed, then the stock opens up the next day down double digit %.  Or if bad news is released during the day and one of the new limiters on the market is hit and halts trading, your order might not get processed.  Your stop loss order does not protect you from these really bad scenarios, it only is useful when the stock is following a slow downward path and you want to get out if it doesn't turn around.  Until you sell, your gain is only on paper.  I am not saying I think one of these horrible scenarios is going to happen to Lending Club, but I thought I would chime in with clarification on how a stop loss order works so people do not get the misconception that it locks in their profit.

While true, this is mostly overcome by applying for after hours privileges at the brokerage firm and setting your stop loss orders active when the market is closed.
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: rawraw on December 13, 2014, 08:56:27 AM
I'm happy for people who are enjoying the ride, but I have to think that LC wouldn't willingly let so much money stay on the table. Why not have $1.5B or $2B in the coffers? The underwriters probably had some of the best people in the business trying to value the company and put a fair price tag on it. That's $15, up given the significant investor interest. With a +60% valuation in one day, so much future growth is baked in that I don't at all blame people who got out at the open. It could stay there for months; it could drop down tomorrow. It's impossible to say. Unrealized gains are opinions.
Yea but trailing stop loss orders to mitigate the risk somewhat.  Unless it happens after hours, like people were saying.
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: JoeB on December 14, 2014, 05:52:35 PM
My philosophy is simple regarding holding or selling:
1) No one ever went broke taking a profit
2) A fast nickel is better than a slow dime
3) When in doubt, pass

And, as for my decision on whether or not to hold LC stock...
1) No one ever went broke taking a profit especially 66% in 2 hours
2) $2500 in 2 hours beats $5000 in 12 month IF it happens
3) I don't know if I should hold so I passed

Point being: LC was up big time when the rest of the market was in the tank this past week so... I feel it's enthusiasm fueling the market and what goes up usually comes down. I'll wait for the downturn or inevitable drop then buy in. And if I miss it, so be it. That $2500 will be earning for me so it's a wash and safer selling.

That concludes this episode.
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: wiseclerk_com on December 15, 2014, 10:03:52 AM
Currently at $27.5
Amazing.
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: Unfolder on December 15, 2014, 10:30:29 AM
Hopefully they'll do something with all this momentum. Would be great to see their first report wildly profitable with 100% revenue growth.  ;D
Title: Re: STOCK PRICE TALK: Opened at $24.75
Post by: VirginiaBob on December 15, 2014, 07:37:51 PM
Bumped up my stop loss order $2 today.   The order was getting pretty close to executing (about $0.50 per share away).  It appears the shares are up about $0.50 in after hours trading, so we'll see what tomorrow holds.