LAFDI market report - Friday 22nd May

By Rupert Taylor on Friday 22 May 2015

Features

The Liberum AltFi Financial Disruptors Index had a very poor week, under-performing by 2.75%.   

 

Weekly return

LAFDI

-2.25%

MSCI World

0.50%

Top 5 performing Stocks in last week

1

XOOM US Equity

6.44%

2

LC US Equity

4.62%

3

RM US Equity

3.08%

4

PFSI US Equity

2.70%

5

ONDK US Equity

1.61%

Worst 5 performing Stocks in last week

1

TUNG LN Equity

-46.44%

2

MONI LN Equity

-20.03%

3

NEWS US Equity

-9.82%

4

MNY AU Equity

-8.83%

5

QIWI US Equity

-6.78%

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

Whilst the 2 big US P2P names Lending Club Corp and OnDeck Capital had a good week, the stand-out performance was of the UK listed wannabe invoice finance disruptor Tungsten Corp. 

Tungsten Corp PLC fell 46.44% over the course of the week as the market seemingly continues to react very poorly to last week’s results.  Whilst results may have beaten expectations at the headline this was down to good management of costs.  The market seems however to have taken considerable fright at the slow base of growth within the business.  Measuring the growth in loans made tells a story of poor momentum and missed expectations.  Tungsten had been aiming to lend out £58m by the beginning of this year but thus far loans outstanding only amount to £32m.  This is a considerable company which, without profits to report yet, has been on a generous ‘growth’ valuation.  News out yesterday stating that the company is currently in talks on a proposed joint venture with an unnamed global financial institution and revealing that it is actively exploring strategic options for its Tungsten Bank business did nothing to stem the slide with the shares down another 14% on the day.  

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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