I believe your skepicism about LEND is warranted and evidently a lot of others share it with 50% of the shares listed as short.
But, the more I looked the stranger it got. I haven’t seen a company with shares (except on the pink sheets) trade like this. 5% of the outstanding shares trade on an average day @ $50ea, 1M sh, and the cap is $1B.
You’re probably right about this going to $ZERO but given the heavy trading activity and short interest it could go either way in a hurry. I think it’s too risky for me.
I took a look at LEND. This stock has about 50% of its shares registered as sold short and it’s basically at its all time high. Kinda strange? The way I read these numbers is… If their quarter’s numbers are OK and they don’t sound bearish a short squeeze could be nasty.
Thanks for the responses. Well, shorting LEND is something I’ll investigate for my trading account. My trading account will be going to 35% cash just before the next hike – I want to save some gunpowder.
For my 401k I have about 10 funds that I can choose from – can’t pick stocks. My allocation, after the next rate hike will bump up in the bond fund and down everywhere else except foreign fund which has been on a tear (20% 2 years+) and then once again after the second hike. I figure that asia will take a little longer to experience the pain of any RE collapse, provided it move along swiftly.
