Sunday, November 18, 2018

LendingClub: Perplexing Negativity

LendingClub reported another quarter of records.
The stock still trades at the lows follow the scandal around the former CEO when the business was at risk.
Even a $7 price target offers a very low FY20 EV/EBITDA target.
After yet another earnings report, LendingClub (NYSE:LC) is trading in the $3.50 range following a quarter where key growth metrics grew at a 20% annual clip. My investment thesis remains solidly on track as the online lending platform with nearly $800 million of cash and loans held for sale is constantly ignored by the market. The perplexing value won't last as the fintech continues to survive and thrive in a rising interest rate environment.
Read the full article on Seeking Alpha. 

11/18 Update
The last quarter should highlight the ability of LendingClub to survive higher interest rates. The stock has been trapped in a tight trading range for most of the year. A break above the recent downtrend along with heading above $4 could finally provide the long awaited breakout.


Disclosure: Long LC. Please review the disclaimer page for more details. 

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