IFISAcava
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Post by IFISAcava on Jul 16, 2019 17:02:46 GMT
Thanks for the link blender I had missed that announcement. To summarise then: FC dramatically pumps up the loan book 2016 to 2018 by lending to any business which fancies the cash with the aim of making the market think that FC is a business with huge growth potential. As a result it gets the shares away at 440p and the founders become millionaires plus plus. By early 2018 defaults are going through the roof and lender returns are barely positive as the c**p in the loan book rises to the surface. Early 2019 increasing numbers of lenders decide to cash out but find that they have to wait 70+ days to get out. This is partly because FC does not want to resell the c**p they issued to the 2018 lenders onto the 2019 lenders. Early 2019 loan growth falls off and the share price tanks from 440p to 125p as shareholders realise that all is not well in the land of Faulty Contracts. Cannot think of any other IPO which, 9 months after launch, had lost 70% of its value. Winner – FC founders. Losers - FC shareholders (big time) and FC lenders and especially lenders wishing to get out. Ultimate loser – FC reputation which must be in tatters. so glad my toe dipping experience in 17-18 was so bad that I didn't put anything in the ISA.
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ashtondav
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Post by ashtondav on Jul 16, 2019 17:23:47 GMT
Winners: new lenders and re-investors.
Losers: those selling out.
Didn’t you read the risk warnings? Vodafone share price lost over 80% c2000 2001. Still in business, still pumping out dividends. You lot are why the FCA is right to plan limiting p2p to “sophisticated” investors.
My average return from p2p platforms canes my FTSE100 tracker in the last 12 months.
But I reiterate, I may well be wrong. Cat food vs caviar report come new year..
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dorset
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Post by dorset on Jul 17, 2019 9:21:04 GMT
Confused about the link ashtondav draws between FC and Vodafone.
Vodafone did not fall 80% between 2000 and 2001. It hit a high in March 2000 and then fell 27% that year, 28% in 2001, 28% in 2002 before rising 40% in 2003. Falls were largely due to write offs in acquisitions that it had overpaid for in the 1990s plus of course the FTSE itself fell from a 2000 start high of 6743 to a low of 3900 in 2002.
Vodafone is a solid cash generative business with a viable and proven business model.
FC is an unstable, unproven, cash burning business.
FC shares fell almost 75% from high to low in the 9 months after the IPO. The FTSE during this period has been relatively flat. Not sure if FC will ever become cash generative? Certainly not enough to be buying caviar.
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Post by shanghaiscouse on Jul 17, 2019 9:57:59 GMT
Errr, 2001 was the global dotcom/telco crash, so hardly comparable. I have a complaint going in to the FCA at this very minute.
On top of all the other issues mentioned above, riddle me this. Due to 'instability in the ecosystem' as FC call it, they have to rely more on securitisations of loans than the actual P2P platform. How do they decide which loans go into the securitisations and which loans are left for P2P? Where is the transparancy over this process? Obviously the loans going into the bundles will be carefully selected to meet the requirements of the funds buying them. Where does that leave individual investors? In the same way that 2019 investors are still being shown returns in excess of 9% because they are not exposed to the huge bulge of low quality loans made immediately pre-IPO whereas people who put money in at the time loans were being pushed out are seeing returns now in range of 4.5% - 4.8%, how do you know the best loans aren't being given to the 'best' buyers?
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Post by Mr Smith on Jul 17, 2019 11:32:22 GMT
Errr, 2001 was the global dotcom/telco crash, so hardly comparable. I have a complaint going in to the FCA at this very minute. We've had 11 years of low IRs, Extreme money printing, asset bubbles everywhere, people thinking the party will never end, investors chasing yield ignoring asset prices etc etc etc.....and you think this isn't comparable to the dotcom bubble ? You're right in a way, it's much worse than the dotcom bubble.
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Post by Mr Smith on Jul 18, 2019 6:13:25 GMT
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Post by Mr Smith on Jul 24, 2019 13:33:55 GMT
A new low today.
The dead cat has been run over by a steam roller.
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Post by happyhippy on Jul 24, 2019 19:36:01 GMT
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Stonk
Stonking
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Post by Stonk on Jul 24, 2019 19:57:56 GMT
The article reads like it was generated by a computer. Other articles on the same site are remarkably similar. If you click the name of the purported author "Robert Smith" to show all his articles, it shows you 10 per page. Hmmm ... quite a few are dated 24 July 2019. In fact, you have to make your way to page 97 before you start seeing articles "he" "wrote" yesterday.
So either "Robert Smith" wrote 961 lengthy and considered technical articles in a single day ... or you can safely ignore the entire cr@ppy clickbait website.
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Post by happyhippy on Jul 24, 2019 20:02:20 GMT
Fair dos.
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Post by happyhippy on Jul 24, 2019 20:03:19 GMT
Thanks
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ashtondav
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Post by ashtondav on Jul 24, 2019 20:03:48 GMT
A new low today. The dead cat has been run over by a steam roller. Yes, that’s why they exited that market. The risks of equity investment are far higher. Compare and contrast holders of Woodford Equity Income Fund with FC moaners who complain of a 2 month delay in selling. WEIF holders would love to sell out in 2 months. And they’re nursing losses far higher than any FC investor. Risk investments are, errr, risky. You no like risk? Go to the BS..,,
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Post by Mr Smith on Jul 26, 2019 9:32:40 GMT
A new low today. The dead cat has been run over by a steam roller. Yes, that’s why they exited that market. The risks of equity investment are far higher. Compare and contrast holders of Woodford Equity Income Fund with FC moaners who complain of a 2 month delay in selling. WEIF holders would love to sell out in 2 months. And they’re nursing losses far higher than any FC investor. Risk investments are, errr, risky. You no like risk? Go to the BS..,, I didnt buy the shares :-) by BS do you mean Building Society ? Have you see the s**t they've been lending on. I'd be surprised if some of the current BS are around in 10 years time. There is risk then there is a suicide wish.
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adrian77
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Post by adrian77 on Jul 29, 2019 10:53:30 GMT
What a perceptive point - definitely clickbait to me although Bob Smith could be a common name in India or wherever for 100 people working in a "link farm"
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Post by Mr Smith on Jul 30, 2019 11:20:17 GMT
New low today.
"Low 112.00"
Usually when I see these sorts of falls, something major is up.
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