LAFDI market report - Friday 6th November

By Rupert Taylor on Friday 6 November 2015

Alternative Lending

The LAFDI delivered another sliver of outperformance this week.      

Weekly return



MSCI World


Top 5 performing Stocks in last week


ONDK US Equity



MONI LN Equity



WEX US Equity



FLT US Equity



MNY AU Equity


Worst 5 performing Stocks in last week


CACC US Equity



QIWI US Equity



SGM US Equity



NSM US Equity



EPO LN Equity



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

The index was lead by OnDeck Capital, the online lender to small businesses which posted a $3.7m profit in the third quarter, beating market expectations for a $2.8m loss.

The New York company reported record revenues but a slowdown in the rate of new loan originations compared with the second quarter. 

The Chief Exectuitve reported that the results were "very strong" and pointed to "continued traction" in its direct and partnership channels, which it has focused on to reduce its reliance on controversial loan brokers.

Origination volumes rose 54 per cent year-on-year to a record $483m, compared with growth of 69 per cent in the second quarter. Gross revenues were up 55 per cent to $67.4m, beating analysts expectations for $61.8m.

The company also boosted full year revenue guidance to between $251m and $253m, compared with previous guidance of $244 to $248m.

OnDeck's guidance for adjusted earnings before interest, depreciation and amortisation almost doubled to between $15 to $16m, compared with previous guidance of $7m to $9m.

Shares have performed poorly this year, dropping almost 60 per cent to $9.46 less than half the initial public offering price of $20. Earlier this month it rolled out an expanded range of loan products to target larger, more creditworthy borrowers and that together with these results could herald a change in share price performance. 

At the other end of the spectrum Credit Acceptance Corp continued its recent trend of weakness.  After an extremely strong 2015 the shares have begun to give back some of their gains.  After trading as high as $260 in August the shares are now back to $177. 

The company reported net income of $3.53 per share versus the average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $3.66 per share.

Please note – The LAFDI is now available on Bloomberg.  Tickers:

LAFDITR GO for the Total Return Index

LAFDIPR GO for the Price Return Index

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