LAFDI market report - LAFDI can't quite keep up

By Rupert Taylor on Friday 5 February 2016

Alternative Lending

The LAFDI at last re-bounded but still failed to keep pace with the wider market    

Weekly return

LAFDI

0.95%

MSCI World

1.11%

Top 5 performing Stocks in last week

1

TUNG LN Equity

16.82%

2

MNY AU Equity

15.29%

3

PYPL US Equity

8.56%

4

QIWI US Equity

6.43%

5

FLT US Equity

6.17%

Worst 5 performing Stocks in last week

1

NEWS US Equity

-15.44%

2

GLIF LN Equity

-14.02%

3

RM US Equity

-7.72%

4

SUS LN Equity

-5.79%

5

IPF LN Equity

-5.08%

 

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

Whilst there has been no concrete news at Tungsten Corporation since a set of poorly received interims in mid December it is worth noting that the stock is up over 50% in 2016.  There has been persistent speculation that the founder, Edmund Truell, could be preparing to take the company private.  The shares lead the leaderboard this week with another double digit move higher. 

PayPal Holdings Inc has also had a strong start to 2016 now trading back at the levels seen when the stock first demerged.  The company continues to dominate the digital payments space with market share estimated as high as 70-80%.  The company also has a useful c.14-15% share of the more competitive mobile payments space.  This week the shares moved on nothing more than some positive broker commentary. 

NewStar Financial Inc has had a poor start to 2016.  On Thursday the shares hit a new 52 week low and the weakness continued into Friday.  The company has subsequently announced that it will report Q4 numbers next week on Wednesday February 10th before the open.  Earlier last week Standard & Poor's Ratings Services said it revised the outlook on the company to negative from stable. "The outlook revision reflects NewStar's rising leverage relative to our tolerance for the rating," said Standard & Poor's credit analyst Matthew Carroll. “Debt to adjusted total equity increased to 4.5x as of Sept. 30, 2015, from 3.2x as of Dec. 31, 2014, and we believe NewStar's leverage may further increase in 2016. The negative outlook reflects NewStar's rising leverage, as measured by debt to adjusted total equity.”

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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PayPal

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