Thanks for going out there and throwing out a trade you are in live. I do it everyday in my business, and always get comments. So kudos to you.
LEND has very low debt ratios, very strong earnings trend the last couple of years. Also, the seasonal trend has been for a rally into the end of the year on this stock from here. These in general would be reasons to buy a pullback. The price/sales ratios is 1.91 which is not as high as I would like for a short, but iteast over 1. Forward p/e is 5.57, very low. This is typical for oil companies and home stocks.
In general most of those reasons, except price/sales ratio ( under 1.0 is best for longs) would be reasons to buy this stock on a pullback.
Most of us are very bearish on RE overall, so maybe that trend makes this trade work. But, in general, it does not meet my parameters for a short. I would prefer a p/sales ratio of 5 or so, higher debt, and dropping earnings. Then a rally against the downtrend in price as a short entry point. Maybe this stock will set up that way in the future.
Good luck right side – I will always pull for someone who has the nerve to throw something like that out there. However, this is not a trade for me based on what I stated above.
