Author Topic: Lending Club's IPO  (Read 22663 times)

brycemason

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Re: Lending Club's IPO
« Reply #30 on: March 08, 2014, 11:18:14 AM »
I'm doing the opposite! I'm buying derivatives against their stock as a hedge against collapse of my notes! Just kidding, although at some point I bet that is used for funds.

rlv99

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Re: Lending Club's IPO
« Reply #31 on: March 09, 2014, 11:01:51 AM »
IMHO, any public company that makes its money predominantly from fees has a very limited upside.  Unlike the big banks , Goldman Sachs, etc., LC has no skin in the game, and, therefore no ability to make the big bucks.  They are also vulnerable to competition which would impact any long-term projections.

If they change management after the offering and manage their day-to-day operations more efficiently, they should be able to perform well over the long-term.  However, if any real money is to be made on their stock it will be at the IPO, and if you are unable to participate at that point then I would suggest to steer clear of the after-market and wait a few quarters to see what shakes out.

Like Rob L, I wish them luck, but I currently plan on skipping this one for the reasons I give above.
 

neals384

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Re: Lending Club's IPO
« Reply #32 on: March 09, 2014, 01:07:10 PM »
IMHO, any public company that makes its money predominantly from fees has a very limited upside.  Unlike the big banks , Goldman Sachs, etc., LC has no skin in the game, and, therefore no ability to make the big bucks.  They are also vulnerable to competition which would impact any long-term projections.

If they change management after the offering and manage their day-to-day operations more efficiently, they should be able to perform well over the long-term.  However, if any real money is to be made on their stock it will be at the IPO, and if you are unable to participate at that point then I would suggest to steer clear of the after-market and wait a few quarters to see what shakes out.

Like Rob L, I wish them luck, but I currently plan on skipping this one for the reasons I give above.

Well, here's another thought.  When your business is producing stuff, say a fast food chain or an oil company, ongoing growth requires continuous capital investment.  A significant portion of profits is plowed back into new restaurants or oil wells.  When your business is money, especially online, comparatively little capital is required for growth. 

Last year, XOM made $32 B profit and reinvested $33 B in capital expenditures.  MCD made $5.6 B and has capex of $2.8B.  BAC made $11.4 B and had $0.5 capex.   INTU made $0.8 B profit and only $0.13 B capex.


james

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Re: Lending Club's IPO
« Reply #33 on: April 04, 2014, 02:58:29 AM »
The more media hype, the less likely ill buy the stock early on.   8)
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