LAFDI market report - Calm after the storm

By Rupert Taylor on Friday 11 March 2016

Alternative Lending

After last weeks huge rally this week the LAFDI re-traced about 1/5th of last weeks absolute gain.  After seeing 20 of the index’s 32 constituents post gains of over 5% last week this week saw an even split between risers and fallers.  

 

Weekly return

LAFDI

-1.44%

MSCI World

-0.02%

Top 5 performing Stocks in last week

1

MONI LN Equity

16.36%

2

WEX US Equity

3.89%

3

BAS1V FH Equity

3.88%

4

IPF LN Equity

3.29%

5

NSM US Equity

2.70%

Worst 5 performing Stocks in last week

1

SGM US Equity

-11.26%

2

PFSI US Equity

-10.96%

3

TREE US Equity

-8.59%

4

SQ US Equity

-7.76%

5

GLIF LN Equity

-7.31%

 

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

Lendingtree Inc suffered this week as it continues to struggle to re-new the uptrend that had persisted until this year.  The latest contribution to this newfound volatility seemed to be a report of an insider sale. COO Nikul Patel sold 4,000 shares of the firm’s stock in a transaction dated Monday, March 7th. The stock was sold at an average price of $89.35, for a total value of $357,400. Following this sale, the chief operating officer continues to own 33,000 shares of the company’s stock. 

Square Inc again fell heavily after results that seemed to include some positives.  Revenue shot up 49.2% to $374.4 million, cruising past the $343.2 million analyst estimate.  After initially reacting well the shares ended the day much lower.  Investors remain concerned about profitability with the company still loss making.  On top of this there are two obvious further issues.  Firstly Square was very reliant on Starbucks as a client and Starbucks will soon be deserting them with plans to launch their own payment processing system.  Secondly is the issue of management.  Jack Dorsey remains CEO of Square Inc alongside his other commitments to Twitter, which has problems of its own. 

Stonegate Mortgage Corp suffered after mixed quarterly earnings released the previous week.  The company reported $0.05 EPS for the quarter, topping analysts’ consensus estimates of $0.02. However, the firm delivered revenue of $46.82 million for the quarter, compared to analysts’ expectations of $62.40 million.  The company has since reported some management changes having appointed Carrie Preston, current Chief Accounting Officer, as its CFO. Preston replaces Robert Eastep, who is leaving the company to pursue other opportunities.

"Carrie's twenty years as an industry veteran and specialties in accounting, auditing and financial reporting for publicly-traded companies make her a valuable addition to our executive team; I look forward to working closely with her as we continue to both maintain and grow Stonegate Mortgage's reputation as a leader in the mortgage industry," said Richard A. Kraemer, CEO of Stonegate Mortgage.

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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