Author Topic: Lending Club - Time to panic?  (Read 64949 times)

Outside the Box

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Re: Lending Club - Time to panic?
« Reply #300 on: April 25, 2018, 02:07:04 PM »
Ohh yep LC stock is hitting a new low. Looks like it will be dropping to the 2.80 range.
$2.77 right now.

chasesfish

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Re: Lending Club - Time to panic?
« Reply #301 on: April 26, 2018, 06:34:27 AM »
Sometimes I wish I would go big on my ideas.  I only put $125 in to $2.50 puts for June....I didn't expect a federal regulator to sue, just terrible earnings in May.   Worth $250 now, before the costs of liquidating.
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ChpBstrd

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Re: Lending Club - Time to panic?
« Reply #302 on: April 26, 2018, 02:29:24 PM »
Sometimes I wish I would go big on my ideas.  I only put $125 in to $2.50 puts for June....I didn't expect a federal regulator to sue, just terrible earnings in May.   Worth $250 now, before the costs of liquidating.
At least you're sitting on gains. I had the synthetic short idea but was too risk averse to carry through.

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ChpBstrd

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Re: Lending Club - Time to panic?
« Reply #303 on: April 26, 2018, 04:02:08 PM »
The more I think about it, the more I wonder if crowdfunding is simply an enabling technology for DIY ponzi schemes. You set up a fake company / persona, borrow some money, make payments from principal for a year or two, get the credit needed to borrow lots more, borrow a lot more, and then ghost.

If so, shorting crowdfunding companies might be a never before encountered opportunity to actually short ponzi schemes! Check out this disaster story and tell me it doesn't fit the description.

https://firechecklist.net/2018/04/21/downside-to-r-e-crowdfunding/

chasesfish

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Re: Lending Club - Time to panic?
« Reply #304 on: May 10, 2018, 05:28:10 AM »
Earnings...surprised everyone.  Company lost money, but they actually found new suckers to invest in them.

Still not reporting investment returns in a consistent manner with the industry.  I was happy to see some collection activity spike and I had my first positive net month thanks to $36 in recoveries.

Anyways, I lost the gain I had in the short position and decided I missed the train once, now it was time to bet hard against the company and I threw a few thousand into the put options and bought some going out into 2019 and 2020.  We will see...
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ChpBstrd

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Re: Lending Club - Time to panic?
« Reply #305 on: May 10, 2018, 09:47:41 AM »
My own reluctance is based on the $400M of cash on their balance sheet. That's a lot to burn through, even with a cash flow of -$113M/year.

LC is riding the roller coaster with the rest of the market. I think if you set a limit order to sell your puts 20% higher than what you paid, you'd have the sale executed sometime within the next several months.

I have held a couple Sears puts over the past 3 mos and they've gone nowhere so far. But I remain confident that SHLD will eventually declare bankruptcy.

uwp

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Re: Lending Club - Time to panic?
« Reply #306 on: May 10, 2018, 11:14:07 AM »
Options are tough, you gotta be right on direction and timing.

FIPurpose

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Re: Lending Club - Time to panic?
« Reply #307 on: May 10, 2018, 11:59:44 AM »
There is usually a bump before a stock goes kaput. People who buy up stocks to cover their short positions is likely the cause. Its hard to imagine that anyone would really value this company at 1.2 billion. Personally, it seems like the stock price should be in the sub $1 range.
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chasesfish

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Re: Lending Club - Time to panic?
« Reply #308 on: May 10, 2018, 08:35:27 PM »
Iím betting this is a dead cat bounce...but again, with that level of cash it might be worth something.
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FIPurpose

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Re: Lending Club - Time to panic?
« Reply #309 on: May 15, 2018, 06:51:34 PM »
Found out that there is a class action lawsuit building up: https://www.prnewswire.com/news-releases/rm-law-announces-class-action-lawsuit-against-lendingclub-corporation-300642988.html

They're looking for people with losses above 100k. They claim that LC had "hidden fees" despite claiming no hidden fees, and the Gramm-Leach-Bliley Act for failing to provide customers with a clear and conspicuous privacy notice so that each customer could reasonably be expected to receive actual notice.

I wonder how much that settlement could even possibly be worth or if it will go anywhere.
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Dollar Slice

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Re: Lending Club - Time to panic?
« Reply #310 on: May 15, 2018, 09:28:44 PM »
Yeah, I got a notice in the mail saying I could potentially join the class action, yadda yadda. But I never lost money with LC since I got out while the getting was good and then made bank on the IPO...
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Syonyk

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Re: Lending Club - Time to panic?
« Reply #311 on: May 15, 2018, 10:03:30 PM »
Posting to follow, because I'm not paying close enough attention to my LC.  I've turned off automatic investment and have been pulling some cash out recently to cover some other (hopefully temporary) losses on a small business loan to a company I've made loans to many times before (long story, don't ask, we understand that this is the last time I'm loaning them money), and because I'm just not sure of their business model going forward.  It seems to be getting awfully close to Harley Davidson's "Zero down, zero a month, until the repo man finds it" loans back in 2008 or so.
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chasesfish

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Re: Lending Club - Time to panic?
« Reply #312 on: May 16, 2018, 05:21:20 AM »
Found out that there is a class action lawsuit building up: https://www.prnewswire.com/news-releases/rm-law-announces-class-action-lawsuit-against-lendingclub-corporation-300642988.html

They're looking for people with losses above 100k. They claim that LC had "hidden fees" despite claiming no hidden fees, and the Gramm-Leach-Bliley Act for failing to provide customers with a clear and conspicuous privacy notice so that each customer could reasonably be expected to receive actual notice.

I wonder how much that settlement could even possibly be worth or if it will go anywhere.

Its interesting all the legal action is for either the stock investors or the borrowers.  Nothing for all of us who put money into the service and has been getting pounded by poor/negative returns
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appleshampooid

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Re: Lending Club - Time to panic?
« Reply #313 on: May 17, 2018, 09:09:22 AM »
I still have 31 notes left, 2 in Grace Period and the rest current. I'm now up to listing the current notes at 20% off . I have no idea what is different about these notes vs. the hundreds of current notes that sold at more modest discounts earlier on (started around 2-3% off and a bunch sold there), and frankly am to busy/lazy to dig in to the data at all. Just want to be done with it.

I sold the last of the 31-120 day late notes at 95% off, and the 16-30 day late at 75%. At that discount I honestly hope the buyer gets the price in recoveries after the inevitable charge off. I just don't want to deal with the trickle of money coming in (which I will still have to, with the notes that were charged off on my account).

chasesfish

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Re: Lending Club - Time to panic?
« Reply #314 on: May 17, 2018, 11:57:44 AM »
I still have 31 notes left, 2 in Grace Period and the rest current. I'm now up to listing the current notes at 20% off . I have no idea what is different about these notes vs. the hundreds of current notes that sold at more modest discounts earlier on (started around 2-3% off and a bunch sold there), and frankly am to busy/lazy to dig in to the data at all. Just want to be done with it.

I sold the last of the 31-120 day late notes at 95% off, and the 16-30 day late at 75%. At that discount I honestly hope the buyer gets the price in recoveries after the inevitable charge off. I just don't want to deal with the trickle of money coming in (which I will still have to, with the notes that were charged off on my account).

The upside of leaving it in there, you'll get a trickle of money and they finally got the tax reporting/importing easy.

The downside is who knows what happens once lending club bankrupts.
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appleshampooid

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Re: Lending Club - Time to panic?
« Reply #315 on: May 18, 2018, 12:37:16 PM »
I still have 31 notes left, 2 in Grace Period and the rest current. I'm now up to listing the current notes at 20% off . I have no idea what is different about these notes vs. the hundreds of current notes that sold at more modest discounts earlier on (started around 2-3% off and a bunch sold there), and frankly am to busy/lazy to dig in to the data at all. Just want to be done with it.

I sold the last of the 31-120 day late notes at 95% off, and the 16-30 day late at 75%. At that discount I honestly hope the buyer gets the price in recoveries after the inevitable charge off. I just don't want to deal with the trickle of money coming in (which I will still have to, with the notes that were charged off on my account).

The upside of leaving it in there, you'll get a trickle of money and they finally got the tax reporting/importing easy.

The downside is who knows what happens once lending club bankrupts.
Sadly this is an IRA account, so no taxable events, AND once I transfer the money out (with the hefty fee courtesy of STRATA), the trickle will never amount to the transfer fee which I think is $150 IIRC.

I know there are some workarounds here that someone posted about getting a fidelity brokerage account through STRATA, I just don't care enough over a few bucks.

sisto

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Re: Lending Club - Time to panic?
« Reply #316 on: May 22, 2018, 12:46:36 PM »
I still have 31 notes left, 2 in Grace Period and the rest current. I'm now up to listing the current notes at 20% off . I have no idea what is different about these notes vs. the hundreds of current notes that sold at more modest discounts earlier on (started around 2-3% off and a bunch sold there), and frankly am to busy/lazy to dig in to the data at all. Just want to be done with it.

I sold the last of the 31-120 day late notes at 95% off, and the 16-30 day late at 75%. At that discount I honestly hope the buyer gets the price in recoveries after the inevitable charge off. I just don't want to deal with the trickle of money coming in (which I will still have to, with the notes that were charged off on my account).
I'm riding it out and still just hoping to still break even

140 notes issued and current
10 notes in grace period
187 notes fully paid
3 notes 16-30 days late
3 notes 31-120 days late
1 note in default
96 notes charged off

I just keep pulling the cash out as notes get paid off.
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FLBiker

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Re: Lending Club - Time to panic?
« Reply #317 on: May 24, 2018, 10:32:20 AM »
I just keep pulling the cash out as notes get paid off.

Me too.  I've got 35 current, 1 in grace, 4 late and 1 default.  I've been phasing out for a while, though (also have 140 fully paid and 86 charged off).

I did pretty well with it all told, but it was WAY more hassle than index funds.