LAFDI market report - Friday 13th March

By Rupert Taylor on Friday 13 March 2015

Features

Whilst weaker in absolute terms the LAFDI has delivered a week of impressive out-performance suggesting that investors are perhaps reappraising the sustainability of the sectors performance in an environment where US interest rates cease to remain close to zero. Whilst global markets remained weak as the investors anticipated the beginning of an interest-rate tightening cycle in the USA, the LAFDI only fell modestly. 

 

Weekly return

LAFDI

-0.20%

MSCI World

-1.93%

Top 5 performing Stocks in last week

1

ONDK LN Equity

20.69%

2

NSM US Equity

11.75%

3

NEWS US Equity

10.22%

4

TUNG LN Equity

8.12%

5

CACC LN Equity

4.81%

Worst 5 performing Stocks in last week

1

TBDY SS Equity

-7.85%

2

XOOM US Equity

-7.84%

3

PFG AU Equity

-5.94%

4

MNY LN Equity

-5.53%

5

SUS US Equity

-5.07%

  * Returns are calculated for the week to local market close on Thursday

OnDeck Capital managed to completely reverse the weakness it suffered last week. It remains the case, just as last week, that there has been little concrete news flow behind to drive the share price. However investors are violently adjusting their expectations partly as the market wrestles to decide if the company should be valued like a tech company or a finance company.  On top of that, given the new model of the company, the market is trying to discount a number of binary outcomes including how aggressively the shares will be regulated and how the model will react in a different interest rate environment.  However, whilst still someway shy of the $28.98 that the shares reached immediately post-IPO, the stock does seem to have stabilized towards $20, after some of the recent bouts of weakness had taken it below $15. 

Tungsten Corp. continued to build on the re-bound that started last week likely in response to continued reports of share purchases by Eddie Truell.  Since February 27th the CEO has purchased shares on Tungsten on three occasions taking the total value of shares purchased to over £1.8m.

Carfinco Financial Group left the LAFDI this week after the aquistion of the company by Santander PLC which was announced late 2014 finally went through and the shares stopped trading. The aquisition of disruptors by more established financial services players is a key theme that is likely to drive valuations and we would expect to see more of this activity going forward.

Please note : The LAFDI is now available on Bloomberg.  Tickers:

LAFDITR Index <GO> for the Total Return Index

LAFDIPR Index <GO> for the Price Return Index

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