LAFDI market report - Friday 8th May

By Rupert Taylor on Friday 8 May 2015

Alternative Lending

The Liberum AltFi Financial Disruptors Index struggled this week, both underperforming and falling in absolute terms.     .  

 

Weekly return

LAFDI

-2.66%

MSCI World

-0.41%

Top 5 performing Stocks in last week

1

XOOM US Equity

6.51%

2

RM US Equity

3.72%

3

QIWI US Equity

2.76%

4

WEX US Equity

1.77%

5

TREE US Equity

1.65%

Worst 5 performing Stocks in last week

1

NSM US Equity

-18.29%

2

ONDK US Equity

-16.83%

3

EPO LN Equity

-8.84%

4

TUNG LN Equity

-8.04%

5

OPAY LN Equity

-7.73%

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

Global money transfer service Xoom Corporation was a rare bright spot in an otherwise gloomy week for the Index perhaps helped by the announcement that the company would launch a money transfer service to Sri Lanka. Xoom has partnered with Sampath Bank, to offer instant deposits to Sampath Bank accounts in Sri Lanka. Furthermore, Xoom will also provide bank deposits within 24 hours to other banks in Sri Lanka, including Hatton National Bank, Bank of Ceylon, Peoples Bank, Commercial Bank, and more. With the addition of Sri Lanka, Xoom’s money transfer services now reach 33 countries. 

Stock market debutant LendingClub Corp released better than expected Q1 figures. as losses narrowed and revenue jumped. The firm lost $6.4 million in the three-month period compared to the loss of $7.3 million in the same quarter last year – this was better than analyst estimates of a loss of $8 million. The company also raised its revenue projections for the full year to $390 million compared to the previous projection of $375 million. Some of this may, however, have already been baked into expectations as the analyst consensus estimate for FY15 revenue is already pencilled in at $382.7 million.  Whilst the shares rallied 3% on the day they did not hold those gains over the week and fail to make the leaderboard delivering a small negative one week return of -0.41%.   The big one day up move on results day would seem to fit with the large short interest we highlighted last week.  It seems that for now at least the short-sellers retain the upper hand. 

On Deck Capital Inc endured another torrid week after last week’s travails.  Whilst appearing to modestly beat analyst expectations at its quarterly results on Monday the shares were trounced that day and continued to slide over the course of the week.  The company reported a loss of $0.05 earnings per share for the quarter, beating the analysts’ consensus estimate of a $0.06 loss. The company delivered revenue of $56.50 million for the quarter, modestly ahead of the consensus estimate of $54.70 million.

Even worse, however, was the performance of Nationstar Mortgage Holdings.  The company reported extremely disappointing earnings on Tuesday delivering $0.24 EPS for the quarter a significant miss against the consensus estimate of $0.71.  During the same quarter in the prior year, the company posted $0.53 earnings per share. The company reported revenue of $215.10 million for the quarter missing the consensus estimate of $295.80 million. 

As a footnote, TrustBuddy, which was removed from the Inedx last month announced a restructuring this week. You can find more about that here.

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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