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by mikestew 3644 days ago
Stock's up 7% as I write this. I'm assuming nothing has been revealed that isn't already at least suspected, and layoffs are generally good for a stock's price. I've already made money on one dip-and-bounce, but currently in at 4.88, so here's hoping it will claw it's way back a little bit. I'm in no way qualified to declare a bottom, but I'm guessing all of the bad news is out of the way. This in no way constitutes investment advice; in fact, I'd steer clear of LC if I were you. But I'm not you, I'm me, and sometimes I invest poorly.
3 comments
ycombobreaker 3644 days ago
Check this chart, which shows LC returns relative to SPY (S&P 500) over the past 5 days. The stock is up from the open today, but relative to the market it looks like it is tracking mostly unchanged from last week, or slightly negative. If I had to guess, I'd suppose that the negative trend is related to brexit's impact on the entire financial sector, and the sharp drawdown/recovery is related to the news: sharp drop on reaction, then partial recovery after value traders decide that the "wash" lending apparently doesn't matter much for future value.

http://www.barchart.com/chart.php?ss=1&spread=LC+%2F+SPY&p=I...

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deelowe 3644 days ago
The entire market is bouncing back from brexit.
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pbarnes_1 3644 days ago
Except Google, which is down 1%... :)
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hkmurakami 3644 days ago
LC has been bouncing up and down with 5-10% daily changes very frequently ever since the news broke about their security fraud and CEO departure. The 7% change today (given the general market rally today) likely means that the market sees this news as neutral.
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mikestew 3644 days ago
Yeah, I'm not sure exactly what to make of it. Everything else I track is up 3-4% today, so that's why I view 7% as a positive outlook. But as you point out, it's a pretty volatile stock, so it may just be riding the rest of the market and got a little extra bump from volatility.

But personally, I don't try to read tea leaves. Set my stop limits so I don't have to watch it like a hawk, set an alert for the upper limit, and watch LC news strictly for entertainment value. Because thought the story is somewhat interesting, it's not anything we haven't seen before with companies like Tyco and Adelphi.

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hkmurakami 3644 days ago
Ah yes Tyco, that was a fun one...
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