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Lending Club Stock Performance

May 11, 2016

 

My name is Roco, I am a RoboTrader; I am a trained technical trader. I make decisions base on charts, not emotions. I follow a set of rules when it comes to trading, I believe that market has trends, and it  is not random.

- RoboTrader is developed by Daniel Wu, Chartered Market Technician

- RoboTrader is a trade mark of Onvest, LLC, a Robo Advisor for equities.

 

In reaction to the resignation of the CEO of Lending Club, according to Wall Street Journal, "two Wall Street investment banks (Goldman and Jefferies) handling bond sales for LendingClub Corp. have stopped buying the company’s loans after the ouster of CEO Renaud Laplanche, people familiar with the matter said."

 

In the next few months or so, the company, as well as the P2P industry in the US will face more skeptics and headwinds.

 

By studying the price chart of Lending Club, which traded as low as $3.98, the volume indicated that it can be near its long term bottom.

 

Why?

 

It is possible that the stock price already reflected most of the bad news and negative sentiments that casted over the last year or so ever since its IPO debut. The stock traded as high as near $27, it has fallen 85%.

 

If you believe in its business model like I do, it might worth watching. The company's revenue grew over 200% year over year consistently, it has over $583 mil in cash (according to Lending Club's 10Q report for 3/31/2016, http://ir.lendingclub.com/doc.aspx?IID=4213397&DID=36518398

 

 

 

Before the stock can recover, it will go through a period of bottom forming, in which we will see a lots of buying and selling within a trading range, perhaps between $3.5 -6.5.

 

If and when these negative sentiment reverses, we can see the stock goes back up to $10 per share. In helping to monitor these possible outcomes, we are going to monitor the stock with our proprietary indicator, BBI - the Bull Bear Index.

 

When the Index is below zero, stock is bearish, when it is above zero, it is bullish. The moving averages (read and black line) cross over can be use as change of sentiment. When cross upward, it becomes less bearish (or turned bullish), and vice versa.

Overall, stock is in a consistent downtrend. At the current stage, the stock is bearish, we can monitor how the averages will cross upward in the near future to detect possible change of sentiment.

 

Stay tuned!

 

*Disclaimer: This information is for educational purpose only. Securities mentioned here is not for the purpose of recommendation, nor it has considered your individual financial situation.  

- Please consult your investment advisor before investing. This website and blog is a publication of Pair Lending. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.

- All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Information on this website and blog do not involve the rendering of personalized investment advice.

- A professional advisor should be consulted before implementing any of the options presented.

- No content should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.Information on this website and blog is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein.

 

 

 

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