I sit on a community bank board and the only pressure to move assets is seen from the regulatory arena. Another factor that should be included in any analysis is the character of bank REO property. Typically, we are seeing lower quality real estate located in the weakest sub-markets that will be the last to participate in any recovery. How much demand is there for a unfinished water park in Illinois?
Apple (AAPL) announces iOS chief Scott Forstall is leaving the company next year; Mac OS chief Craig Federighi will now also be in charge of iOS. Also, retail chief John Browett is leaving. Forstall, once seen as a potential successor to Tim Cook, had come under fire over iOS 6's Maps app and (to a lesser extent) Siri. Browett was hired only in January - many were puzzled by the hiring, given Browett's track record at U.K. retailer Dixons. [View news story]
Agree wholeheartedly with Tack-matches my experience with successful companies becoming risk averse and unwilling to destroy the status quo (e.g., Kodak)
When the going gets tough, the tough cut the retirement age. New French President Hollande announces he's rescinding Sarkozy's 2010 bump from age 60 to 62. While the reforms could cost the strapped government billions, a cabinet minister says it will be paid for through higher worker and employee contributions. [View news story]
I will be even more surprised when France rescinds winter.
Facebook's (FB) poor IPO showing and the resulting fallout "will hurt the funding market for earlier stage startups," warns Paul Graham, co-founder of major startup incubator Y-Combinator. Graham expects many hot startups will have to accept funding rounds with lower valuations than the ones granted in prior rounds. He's far from alone in expressing such concerns. [View news story]
Hard to understand why this will serve as an barrier for future funding. My guess is founders will still enjoy lofty valuations even if not at nosebleed levels.
A rogue trader scenario isn't what happened in the JPMorgan (JPM) mess, observes Dennis Gartman. It seems more likely the result of a failed hedging strategy. The problems are going to get worse too, Gartman says. "I operate under the old rule that there is never just one cockroach; when ill news comes out there is usually more ill news to follow.” [View news story]
JPM-best managed bank and most capable team to address the cause of this "fail", hold those responsible who violated policies or authorities and incorporate into lessons learned.
Chesapeake Energy (CHK -13.9%) may have to delay some of the $14B in asset sales planned for this year because low natural gas prices may hurt its ability to comply with credit covenants, the company says in an SEC filing today. (more) [View news story]
I learned that garbage at a discount is still garbage.
We can all measure the cost of ineffective CHK corporate governance that permits self dealing and enrichment.
Chesapeake Energy (CHK -13.9%) may have to delay some of the $14B in asset sales planned for this year because low natural gas prices may hurt its ability to comply with credit covenants, the company says in an SEC filing today. (more) [View news story]
Sold out over the past 2 days-way too much noise to evaluate the risks. There are better natural gas risk-reward options.
Low returns on stocks and bonds is helping LendingClub - an online financial startup - attract investors who buy loans in the company's online marketplace with rates ranging from 5.4% to 25% (depending upon a borrower's credit score). The latest to step into social lending is Thomson Reuters (TRI) with a reported $25M investment. [View news story]
zmahlum,
Not at all surprised by your report. Lending is one of the oldest businesses and certain risk will never be completely avoided. After the recent financial market meltdown, one needs a return far greater than 7% to compensate for limited track record, no liquidity or secondary market and questions about the sponsor's profitiabilty and ability to scale the platform.
LC is a promoters dream-great sales pitch-helping the neglected consumer obtain needed loans a social platform and progressive use of IT platforms to scale the business. You know what they say? Too good to be true.
Bowing to investor pressure, Hartford Financial (HIG) announces it will exit its annuity business and weigh a sale of a large portion of its life-insurance operation. CEO Liam McGee says the move will let the company focus on its property-casualty unit, where the company got its start more than 200 years ago. (PR) [View news story]
Cloud software companies are being acquired left and right (I, II, III, IV), but most of these deals will be failures for the acquirers, says industry exec Flip Filipowski. The acquired companies sport agile, dynamic cultures whose best talent won't stick around post-merger, rather than deal with the bureaucracy of a larger firm. As a result, the acquiring companies will often end up fielding "immature half-baked offerings" that are surpassed by new upstarts. [View news story]
Hard to view Flip's opinion as anything short of self serving. Flip, and how much money did you burn and how many companies destroyed via Divine?
AT&T (T) will launch 4G LTE service in 5 cities this weekend, and plans to add 10 more by year's end. But this pales relative to the 102 cities covered by Verizon Wireless' (VZ, VOD) LTE network as of July; and for the time being, AT&T's service, unlike Verizon's, won't support any phones, only modems, tablets, and hotspots. [View news story]
Agree...contract make switching a bit sticky. It will eventually occur but slower.
AT&T (T) will launch 4G LTE service in 5 cities this weekend, and plans to add 10 more by year's end. But this pales relative to the 102 cities covered by Verizon Wireless' (VZ, VOD) LTE network as of July; and for the time being, AT&T's service, unlike Verizon's, won't support any phones, only modems, tablets, and hotspots. [View news story]
We can expect ATT to continue its pattern of lying about its network, coverage and quality. There is a justifiable reason why consumers prefer Verizon.
Low returns on stocks and bonds is helping LendingClub - an online financial startup - attract investors who buy loans in the company's online marketplace with rates ranging from 5.4% to 25% (depending upon a borrower's credit score). The latest to step into social lending is Thomson Reuters (TRI) with a reported $25M investment. [View news story]
Good luck. I wish them no harm just didn't fit my risk parameters.
Low returns on stocks and bonds is helping LendingClub - an online financial startup - attract investors who buy loans in the company's online marketplace with rates ranging from 5.4% to 25% (depending upon a borrower's credit score). The latest to step into social lending is Thomson Reuters (TRI) with a reported $25M investment. [View news story]
A friend asked me to review the program and after reading the prospectus and 10-K the advised against.
Among my concerns:
Limited borrower verification including income. High effective costs to service and enforce. Management team biased to marketing/sales/promotion skill set. Headcount is weighted to marketing/sales/customer service. Unknown credit culture. Limited operating history raising doubts about future loan performance, delinquencies and losses. From 5/07 to 3/11, only 11% of the loans have been fully repaid. The recovery rate on charge offs was $56,000 or about 6%. All loans 120 days past due are charged off. Also, if there is ever a future recovery past the original note maturity date, the investor will NOT receive the monies-LC retains it. Review the risk listing-hard to find the rationale for accepting those risks. You are dependent on LC to manage your investment. LC is unprofitable.
Roger Nusbaum Positions For 2013: Think Long Term, Invest Globally [View article]
Another Real Estate Bubble? [View article]
Apple (AAPL) announces iOS chief Scott Forstall is leaving the company next year; Mac OS chief Craig Federighi will now also be in charge of iOS. Also, retail chief John Browett is leaving. Forstall, once seen as a potential successor to Tim Cook, had come under fire over iOS 6's Maps app and (to a lesser extent) Siri. Browett was hired only in January - many were puzzled by the hiring, given Browett's track record at U.K. retailer Dixons. [View news story]
When the going gets tough, the tough cut the retirement age. New French President Hollande announces he's rescinding Sarkozy's 2010 bump from age 60 to 62. While the reforms could cost the strapped government billions, a cabinet minister says it will be paid for through higher worker and employee contributions. [View news story]
Facebook's (FB) poor IPO showing and the resulting fallout "will hurt the funding market for earlier stage startups," warns Paul Graham, co-founder of major startup incubator Y-Combinator. Graham expects many hot startups will have to accept funding rounds with lower valuations than the ones granted in prior rounds. He's far from alone in expressing such concerns. [View news story]
A rogue trader scenario isn't what happened in the JPMorgan (JPM) mess, observes Dennis Gartman. It seems more likely the result of a failed hedging strategy. The problems are going to get worse too, Gartman says. "I operate under the old rule that there is never just one cockroach; when ill news comes out there is usually more ill news to follow.” [View news story]
I bought on Friday at 36.91.
Chesapeake Energy (CHK -13.9%) may have to delay some of the $14B in asset sales planned for this year because low natural gas prices may hurt its ability to comply with credit covenants, the company says in an SEC filing today. (more) [View news story]
We can all measure the cost of ineffective CHK corporate governance that permits self dealing and enrichment.
Chesapeake Energy (CHK -13.9%) may have to delay some of the $14B in asset sales planned for this year because low natural gas prices may hurt its ability to comply with credit covenants, the company says in an SEC filing today. (more) [View news story]
Low returns on stocks and bonds is helping LendingClub - an online financial startup - attract investors who buy loans in the company's online marketplace with rates ranging from 5.4% to 25% (depending upon a borrower's credit score). The latest to step into social lending is Thomson Reuters (TRI) with a reported $25M investment. [View news story]
Not at all surprised by your report. Lending is one of the oldest businesses and certain risk will never be completely avoided. After the recent financial market meltdown, one needs a return far greater than 7% to compensate for limited track record, no liquidity or secondary market and questions about the sponsor's profitiabilty and ability to scale the platform.
LC is a promoters dream-great sales pitch-helping the neglected consumer obtain needed loans a social platform and progressive use of IT platforms to scale the business. You know what they say? Too good to be true.
Bowing to investor pressure, Hartford Financial (HIG) announces it will exit its annuity business and weigh a sale of a large portion of its life-insurance operation. CEO Liam McGee says the move will let the company focus on its property-casualty unit, where the company got its start more than 200 years ago. (PR) [View news story]
Cloud software companies are being acquired left and right (I, II, III, IV), but most of these deals will be failures for the acquirers, says industry exec Flip Filipowski. The acquired companies sport agile, dynamic cultures whose best talent won't stick around post-merger, rather than deal with the bureaucracy of a larger firm. As a result, the acquiring companies will often end up fielding "immature half-baked offerings" that are surpassed by new upstarts. [View news story]
AT&T (T) will launch 4G LTE service in 5 cities this weekend, and plans to add 10 more by year's end. But this pales relative to the 102 cities covered by Verizon Wireless' (VZ, VOD) LTE network as of July; and for the time being, AT&T's service, unlike Verizon's, won't support any phones, only modems, tablets, and hotspots. [View news story]
AT&T (T) will launch 4G LTE service in 5 cities this weekend, and plans to add 10 more by year's end. But this pales relative to the 102 cities covered by Verizon Wireless' (VZ, VOD) LTE network as of July; and for the time being, AT&T's service, unlike Verizon's, won't support any phones, only modems, tablets, and hotspots. [View news story]
Low returns on stocks and bonds is helping LendingClub - an online financial startup - attract investors who buy loans in the company's online marketplace with rates ranging from 5.4% to 25% (depending upon a borrower's credit score). The latest to step into social lending is Thomson Reuters (TRI) with a reported $25M investment. [View news story]
Low returns on stocks and bonds is helping LendingClub - an online financial startup - attract investors who buy loans in the company's online marketplace with rates ranging from 5.4% to 25% (depending upon a borrower's credit score). The latest to step into social lending is Thomson Reuters (TRI) with a reported $25M investment. [View news story]
Among my concerns:
Limited borrower verification including income.
High effective costs to service and enforce.
Management team biased to marketing/sales/promotion skill set. Headcount is weighted to marketing/sales/customer service.
Unknown credit culture.
Limited operating history raising doubts about future loan performance, delinquencies and losses. From 5/07 to 3/11, only 11% of the loans have been fully repaid.
The recovery rate on charge offs was $56,000 or about 6%. All loans 120 days past due are charged off. Also, if there is ever a future recovery past the original note maturity date, the investor will NOT receive the monies-LC retains it.
Review the risk listing-hard to find the rationale for accepting those risks.
You are dependent on LC to manage your investment. LC is unprofitable.
I stand by my conclusion.