Funding Circle Share Discussion Threads

[mridyard] 20/12/2018 18:37

I didn't say they are not worth anything just not the IPO share price 440p IMO. I bought low and sold at price I felt was over valued imo.

[mridyard] 20/12/2018 14:41

I took a small position in FCH a couple of months ago and sold out when it reached 385p. I didn't subscribe to the original IPO, but I'm struggling to see how a company that has not made a profit yet was valued at 440p. Maybe worth another position once this has bottomed out.

[acquisitor] 20/12/2018 10:27

My fair value for this share in the medium term is 80 pence. Someone will probably buy the company for a higher price, but I will not be interested in buying unless it goes below 50 pence.

[giardap] 26/11/2018 20:09

Or one of the FAANGs?

[acquisitor] 13/11/2018 14:59

This could well be the Lastminute.com of this cycle.

[yump] 10/10/2018 13:21

If anyone wants to compare FC with anything, compare it with Lehmans, that's about as close as you'll get to anything worth thinking about.

Except that FC's loans are continually terminating and being renewed all the time, whereas bad mortgages come to crunch all at once.

[biggest bill] 10/10/2018 12:56

The problem with Funding Circle is that it is still making large losses in what is a pretty benign business environment. When the next economic downturn comes (and believe me, it always does), the company could run out of money amazingly quickly.

[pb01] 10/10/2018 12:30

Biggest hill - if its popular with customers it will make money - thats got to be good for its earnings. I cant comment on current valuation from an investment standpoint. I just think the product and service is good.

[biggest bill] 10/10/2018 12:27

Pb01, I was looking at Funding Circle as a potential investor, not a customer. I think Funding Circle will be popular with customers but from an investment point of view, I see the chances of failure here as incredibly high. I would be surprised if Funding Circle exists in its present form in five years time.

[pb01] 10/10/2018 11:58

I run a small business and my experience of funding circle has been very positive. Far faster and more flexible than borrowing from a bank. I hope this company succeeds as UK business need this type of fast and flexible loans to grow. I was prepared to secure my loan with funding circle and had similar secured terms from the bank also. Difference is a I got a decision in 2 days with funding circle. I gave up with the bank route after 4 weeks of filling in countless forms.

[thetoonarmy2] 09/10/2018 14:01

Its only a matter of time before it gets stuffed as the above poster red has said its a disaster waiting to happen.
I just hope ordinary punters dont get burned, the original directors obviously had a good payout now.

[biggest bill] 09/10/2018 12:56

This is the most overvalued company that I have seen in years. How on Earth did they manage to float it at this market cap? It's a disaster waiting to happen.

[thetoonarmy2] 05/10/2018 16:56

mridyard. Oh I know how to do a short,I have an IGF account also but was saying never quite balanced it that shorting was moral? Stupid maybe its all about making a few bob and I certainly think this is headed under £3 soon.

[mridyard] 05/10/2018 09:25

Thetoonarmy2, it's easy to short this stock open a CFD account with IG. I've checked you can short FCH, current sell price 337p. It will cost you a daily interest equivalent to 3% PA.Required Margin 25%.I've taken a small buy position and will top up once it's stabilised. It is a high risk investment but they have managed to raise £1.5bn in the IPO.Anyway I hope your sentiments are wrong time will tell.

[thetoonarmy2] 05/10/2018 08:08

Mridyard. You are joking surely, they charge a commission on every loan? they pay out up to 7.5% commission to introducers for every loan, they are picking up a large number of defaults this would have been better priced at £2.50 max per share on IPO anyway think you will see this unless lots “ stabilisation” manoeuvres are done it would be a good time to get out.

I’m looking at taking a Short out on this FC, not CF though :) must say I haven't done a short before will look at it just wished I had done it when it floated.

[mridyard] 05/10/2018 06:38

Should be worth a punt at this price. Remember CF charges commission on each loan and their capital is not at risk. The growth in the company shows investors are still making a reasonable profit. Clearly the market believes the share price was too high.

[mxds] 04/10/2018 19:55

Hi Red - I too feel like I dodged a v big one. I am so glad I read up on the various reports (esp Motleyfool, FT), that recommended sitting on the sidelines to see what happens since Stateside equivalents had spectacularly failed.
I have actually lent a considerable sum of money through FC for the last 4 years. It was great when you could choose which company to invest in but they took that feature away, instead smoothing out the loans for all - they also made a disastrous foray into offering up loans to property developers - generally marking the loans as virtually risk free (A* rating) - from what I gather a large percentage have defaulted, certainly those I was unfortunate to lend too - IMHO it proved far simpler for the developers to borrow very large sums of money and default than actually build anything.
Also FC mislead lenders by not marking late payers as bad debt - might seem reasonable until you discover you can't actually sell the late paying loans, so are stuck with them till they too default, often some way down the line. That said I did make a profit overall, but am also sitting with a bag of late and defaulted loans I can't shift.
Thanks for kicking off this thread and likewise I hope there aren't other private investors feeling pained by this failed IPO

[redroobbo] 04/10/2018 17:29

Wow, I really dodged a bullet with this one, I actually looked at the IPO documents but then when I thought about it and realised this will be the next Quindell maybe or PPI scandal, in my opinion, all those poor beggars thinking they have money deposited safely invested in high-quality companies?

Can't remember any other companies who had a float at the lower end pricing then get scalped another £1 within a day bet the investors are really pleased with this one, I just hope not many ordinary joes got shafted here.

Don't think this will be a share of the year somehow especially when they put out the actual losses on bad loans etc as unsecured lending isn't the cleverest investment strategy, does anyone disagree?
This is only my opinion.