ashtondav
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Post by ashtondav on Jul 3, 2019 14:52:37 GMT
Most p2p companies lose money. Zopa has been losing money since 2005 with no problem getting backers.
Amazon almost always loses money. Uber loses money. Tesla loses money. As for the business model it’s not dissimilar to the likes of Hargreaves Lansdown who cream off .45% pa from unit trust holdings and £12 (approx) on share purchases and sales. In both cases it gets the money whether you make or lose 50%.
In all cases those who back them are in for the long term, or very silly. And not many venture capitalists or big investors are silly.
I suggest a trial subscription to the FT - they’re quite good on this type of thing.
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ashtondav
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Post by ashtondav on Jul 2, 2019 15:11:47 GMT
He was in at 440 and nothing in the underlying business model / environment has changed materially since IPO so in his view just makes the recent low prices a buying opportunity. His risk from a low share price is if further money is needed it will dilute his stake much more than would have been the case with a strong price. Err, lots have changed. They’ve modified revenue guidance down by 50% for a kick-off! So if IPO price was 440p and revenue is projected to be down 50%, it would be logical to see the share price at about 200p. Add in another 50% for incompetence and 100p is probably a fair price.
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ashtondav
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Post by ashtondav on Jul 2, 2019 8:58:07 GMT
Which just goes to emphasise the lower risk/return of p2p Vs the higher risk/return of shares.
FC share price has declined by more than 50% since IPO. No lender has lost that.
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ashtondav
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Post by ashtondav on Jul 2, 2019 6:54:29 GMT
Now down another 13% on the day today. £1.54.
Shares don't go down in price like FC's has unless there is a stock exchange announcement or figures are released.
Neither has happened so somebody knows something and word has got out to the City.....
Someone got wind of the H1 update released today www.proactiveinvestors.co.uk/LON:FCH/Funding-Circle-Holdings-PLC/rns/LSE20190702070009_14132411Given the uncertain economic environment demand demand for loans has decreased and FC have tightened lending criteria. This will benefit lenders but result in slower than previously forecast growth. So bad news for shareholders, slightly better news for lenders (apart from those looking to dump 2016-2018 loans)
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ashtondav
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Post by ashtondav on Jul 1, 2019 17:33:02 GMT
Selling out early guarantees a low return. Staying in requires an act of faith in the new underwriting policy from Q1. you pays yer money..... But if you are staying in then you must already have a loan book full of the c**p from 2016 to 2018? If you put more money in then you cannot specify 2019 loans only.
Well, not really. The reason it’s taking you lot ages to sell your cr@p loans is that FC are rationing that cr@p to new lenders so they are not so exposed to the cr@p cohorts. Their estimates for 2019 originated loans are higher than 2018. They can only meet that expectation if they limit cr@p distribution. Hence your sales taking two, and soon probably 3, months As with most financial institutions the existing punters are shafted in favour of the newbies. So i’m Staying in and seeing what happens as I’ve low exposure. Anyways, the FC credit maestro gives his half year update soon so it should make interesting reading.
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ashtondav
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Post by ashtondav on Jul 1, 2019 17:20:02 GMT
Any loans that can’t be sold are transferred to a non isa AC account in your name.
The only part of your AC IFISA that can be transferred to a new provider is the proceeds from loans that can be sold.
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ashtondav
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Post by ashtondav on Jul 1, 2019 10:41:35 GMT
Selling out early guarantees a low return.
Staying in requires an act of faith in the new underwriting policy from Q1.
you pays yer money.....
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ashtondav
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Post by ashtondav on Jul 1, 2019 6:41:56 GMT
So what is the latest matching time for new money?
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ashtondav
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Post by ashtondav on Jun 30, 2019 17:23:01 GMT
Hasn’t everyone written this dog off and moved to a more professional platform?
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ashtondav
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Post by ashtondav on Jun 30, 2019 17:21:07 GMT
Only the young and the pretty tweet for FC. Behind these sweet faces are some hairy arsed oldies who have assured us DD has been tightened up in Q1 and Q2. They don’t tweet.
Anyways, my return on FC is a Few hundred % better than the saps who bought the shares.
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ashtondav
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Post by ashtondav on Jun 29, 2019 13:57:44 GMT
Love this thread. Love it to bits.
HTF is FS still in business...
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ashtondav
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Post by ashtondav on Jun 28, 2019 15:45:29 GMT
I just sold at 183, an absolute effing disaster but i could only see it continuing to go down. FC as an investment is a busted flush. I lost 3,000 on a 5,000 investment in the IPO. I have serious questions about just what the hell has been going on there. They need to seriously rethink their model because at the moment they are not charging enough to make a profit, they have to stop chasing loans at any cost. Well according to them they have stopped chasing . Started 1st quarter this year. The trouble is the 2017/2018 cohorts which the sellers on this board and the IT can’t sell easily. the FC model is no different from many banks and is very cyclical.
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ashtondav
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Post by ashtondav on Jun 28, 2019 7:52:32 GMT
Well, although it is called “Ratesetter” there is no mention of who, exactly, sets the rate!
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ashtondav
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Post by ashtondav on Jun 21, 2019 18:21:19 GMT
The 1.5% non deductible fee was a not insignificant nail in the coffin for any honest HR taxpayer.
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ashtondav
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Post by ashtondav on Jun 21, 2019 18:19:06 GMT
Er, are you still a customer?
I would agree it’s pretty vacuous. How about some news on credit quality, defaults and the PF?
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