Market's view on Lendinvest
Published on April 2024
- A significant trade involving 600,000 shares at 28.0p was noted, speculated to be either stake building or a large individual investment.
- Positive views were shared on the company returning to profitability as mentioned in a recent RNS, with anticipations of a dividend.
- Cavendish broker has set an unusually high target price with a potential gain of 1,000%, sparking discussions on its feasibility.
- LendInvest is recognized for facing significant challenges, yet optimism remains due to substantial ownership by directors.
- Concerns were raised about the high initial public offering price and the subsequent performance of the stock and bonds.
- Doubts on the company’s financial manoeuvres surfaced with the offer of a 34.5% return over 3 years, suggesting desperation for funds.
- Queries were made about the truth behind a 6.75% dividend rate announcement.
- Observations were made on the negative impacts on reserves from fair value investment adjustments not reflected in the profit and loss statement.
- Despite a tough economic climate, LendInvest’s growth and market share increase were highlighted, retaining a fair value of 180p/share.
- The company’s financial year results showed strong growth and profitability, leading to its first dividend, with the stock perceived as undervalued by some analysts.