IB Net Payout Yields Model

Lending Club: After The Initial Lockup Expiration

  • The initial lockup expiration of 150 million shares occurred on June 9.
  • A larger lockup expirations occurs in August.
  • Lending Club doesn't offer the valuation metrics needed for a stock facing the potential unloading of shares by venture funds.
One of the most annoying events in the stock market is the lockup expiration that occurs usually six months after an IPO. This is the point at which most insiders, including large venture capital investors, are able to dump shares acquired before the company went public. The annoying part of the event is that it usually pressures the stock down despite full knowledge of all market participants of the event occurring months in advance.

Read the full article on Seeking Alpha.

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