27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
LendingClub Corp (NYSE: LC) seems to have a stable outlook and appears poised for a return to growth, Morgan Stanley’s James E. Faucette said in a report. He upgraded the rating on the company from Equal Weight to Overweight, while establishing a price target of $7.
Analysts are largely bullish on LendingClub’s EPS, scheduled to be reported Thursday.
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7 Reasons To Be Positive
Faucette mentioned the following positives for LendingClub:
- New management hires: The several key hires recently made by the company have “the right blend of backgrounds to restore investor confidence and get the business back on track,” Faucette commented.
- Stable capital availability: Feedback from institutional and retail investors indicate limited downside risk to origination, suggesting stable capital availability for 2017.
- Sustainable data analytics advantage: “We expect slow progress from banks to keep the advantages established by FinTechs firms such as LC intact over the near term,” the analyst wrote.
- No brand damage: Faucette believes that there is no evidence suggesting any damage to LendingClub’s brand among borrowers.
- Incremental data suggest stability: “SEC data show trough is past; competition is more hamstrung; banks are returning to invest more quickly than expected; new product launch indicates LC is back to normal operating rhythms; securitization volumes show robust interest in marketplace assets,” the Morgan Stanley report noted.
- Pricing flexibility: LendingClub has witnessed only a modest increase in loss rates, similar to that experienced by other consumer lenders. The company has the flexibility to raise pricing.
- Risk/reward attractive: Given LendingClub’s long-term opportunity, the stock appears “inexpensive against internet comps” and provides downside protection.
The company now faces competition from Marcus, Goldman Sachs Group Inc (NYSE: GS)'s online consumer-lending platform that went live in October.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.