mary
Member of DD Central
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Post by mary on Oct 26, 2018 7:40:54 GMT
A successful and profitable product requires a constant supply of new loans (not tranches) to allow diversification to reduce risk of Capital loss.
Anyone investing now will be stuck in very illiquid and concentrated loans, they just don’t know that. As the product is so new no one has likely tried to extract money yet. When they do, then they will discover the problem.
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invester
P2P Blogger
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Post by invester on Oct 26, 2018 7:57:28 GMT
If they get a decent black box product up and running it will be profitable. Agreed. The question is when? They seemingly let go of the guy tasked to originate all these new deals..... their brand is also on a downhill trajectory, not from on here, but in the press who aren't shy about pointing out the London loan and the loanbook lateness. They could be doing it in the background and not showing the loans to self-select customers but I think that's unlikely - at the start they will need the money to get the loans to draw down. One quicker way would be to just purchase someone else and scale up their operations but I see that as unlikely as well... there would bound to be disagreement on the valuation of the company. In my view brands are worth nil, so that leaves it as a small multiple of the value of the deals they already have.
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GeorgeT
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Post by GeorgeT on Oct 26, 2018 12:46:01 GMT
Another website, which I assume it is OK to link to (if not please remove), is reporting that Paul R left for "personal reason".
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invester
P2P Blogger
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Post by invester on Oct 26, 2018 13:34:55 GMT
Can't blame him.
He came from a legitimate company in AXA Wealth doing the same job.
What has his job become at Lendy? Defending the company against attack from various angles, arguing with Trustpilot to get reviews from digruntled customers removed on technicalities, trying to pretend (until a few months ago) that nobody had lost a penny. Any exciting marketing schemes to drive the company forward have been replaced by paying fresh-faced fools to sit in a boiler room whilst pretending they are 'executives in the financial industry'.
If you had any form of conscience you would feel bad bending the truth every day.
At the time he joined no doubt it might have looked like Saving Stream were on course for very big things and set to disrupt the mainstream lenders. Now even the mainstream are mocking Lendy and pointing out its faults.
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