IB Net Payout Yields Model

LendingClub: Not All Reverse Splits Are Bad

LendingClub announced the reverse split will be effective when the stock opens for trading on July 8.
Historically, reverse splits are bad for shareholders with stocks underperforming the market by a wide margin.
The stock remains perplexingly cheap at an EV/S multiple of 1x and EV/EBITA of 6.5x.
Use any reverse split-related weakness to own LendingClub.
For multiple reasons, reverse splits don't typically work out well for shareholders. The news that LendingClub (LC) is pursuing a 1-for-5 reverse split followed a 10% gain during the trading day. Investors shouldn't necessarily stray away from the fintech on this news due to the perplexing value in the stock.

Read the full article on Seeking Alpha. 
More commentary on WhoTrades 
Disclosure: Long LC. Please review the disclaimer page for more details. 


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