Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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Did you work for them ?. You know a hell of a lot about there staffing and the way they perform
I took a small punt at 82 this am will take my five percent hopefully at the end of the week if they come out with reasonable numbers sometime this week
£300m with Starling. This is just another institutional investor. It does demonstrate liquidity which is great. However, they need to be able to deploy the funds (that means finding businesses that meet their criteria and are happy to pay their rates) and then they need to get repaid.
This also does not impact upon their existing loan book they manage on behalf of investors. I would imagine a lrge part of this will be in default and potentially going bad.
I genuinely don't think FCH is a good investment. They are a lending platform. In order to make money they need to keep lending. 50% of their revenue is spent on marketing. They benefited from listing at a multiple of their revenue by been viewed as a tech company rather than a finance company. Listing at over £4 a share. Personally, I can't see this coming good.
Another issue they have in the US is employing decent staff to develop what tech they need. There are other real tech companies with deeper pockets paying for good staff. That is why they moved from San Fransisco.
City am reported
What you forgot too say was!!
300 million deal signed with Starling
More to come they say
The FCH model needs understanding. In effect they earn money in 2 ways. They charge a fee upfront and a fee for funds 'under management'. They have stopped normal lending and currently only do CBILS. They are charging a 4.5% fee to the government on each loan. If deals come in from brokers they are splitting this fee. They have stopped taking funds from retail investors (private individuals) and are using institutional investors.
The existing loan portfolio that they manage on behalf of investors is in a mess. Retail investors are unable to liquidate their investments. Type 'Funding Circle Reviews' into Google and read the Trustpilot reports. Unhappy investors across the board. There will be bad debts and arrears on an increasing basis. Think of how many businesses they have loaned money to in the hospitality sector.
Going forward, in a higher risk environment it will be harder to underwrite loans. Institutional investors will want lower risk opportunities or higher returns. They are already charging up to +20%.
In my opinion this model is doomed. The Bounce Back loans will have blown a lot of demand out of the water. they do not have the capability to deliver CBILS in a big way. They were 2nd to the party and the banks have taken all the easy loans. I don't short sell but I would be short selling FCH.
Funding circle is booming still with loans and looking to open its P2P platform again
watch the bounce in the coming weeks!
out today. Coronavirus Bounce-Back Loans (CBBL) start on Monday and they offer 50K on self certification and just a simple form. No interest for a year then a low rate. Think they will take out a lot of FC work. 30 million unemployed in US today. Yikes! Take some cash back from the mkts from somewhere after this wonderful run is my view. GL all.
Times will be great for funding circle now - first time buy into FC:
- CIBILS Approval in UK - they're offering competitive rates starting next week
- US Senate approved another batch of 350 billion + loans through PPP (Funding circle are approved in the US too) more likely on the way
- Rishi Sunak about to announce UK loans under 25k will be 100% govt guaranteed can't think of a company who's in a better position to offer loans to these micro businesses!
Taken my largest stake in FC!
CIBIL apprval
Dead Cat Bounce
Please, sorry for dumb question, what's DCB?
DCB?
More like 20 here we come. I accept I have hindsight on my side.
It is important to remember that this business does not have a loan book.
Their investors hold the loan book.
However, they will be forced to tighten credit criteria.
They generate 1% of funds under management. Overheads are high. Marketing costs are astonishingly high.
They believe repeat business will save them. That is on the assumption customers want to borrow again, they are happy to underwrite that loan and investors are providing liquidity.
I think they are finished.
As the share price continues to fall as predicted its probably all over.
It's not looking good. Wasn't convinced before the CV19 hit ( see below ).
Any big recession was going to tip some lenders over the edge.
I'd image all the P2P lenders are in a bit of a sorry state right now.
Bad debt rates will be rocketing. I think it may be game over for this business.
Resistance finally broken at 70.00...looks like 50.00 here we come.
Also , todays performance figures show they are going in the right direction
Yes Pyueck , clearly some people will opt out of p2p lending and put their money back in the bank earning next to nothing and I sympathise with anyone who has lost money in any investment . I just feel that Funding circle is more stable as it has been backed by government investment and that of large institutions , and the reason that it is not making a profit is because it is trying to grow its market share as the bigger and more established they become , the better .
At what point will these numbers turn into a profit for FCH? Forecasts are still for further losses in next two years of over £100m
Portfolio2 I understand your thoughts but I think you are wrong. If you think that investors of platforms that have collapsed where they now know there were terrible controls and regulatory oversight in place and have lost thousands of hard earned money are thinking "ah well let's find another p2p platform to stick the rest of my life savings into" I believe you are very wrong. More likely they are thinking every p2p site seems good until it goes to the wall, once the site has collapsed its too late. With the current regulatory oversight clearly not fit for purpose I can have no confidence that the FCA regulations mean anything at all and the recent changes seem more designed to protect the FCA rather than consumers. Far better to get out of the sector entirely rather than hope that by luck the platform you stick your hard earned money in isn't one of the rubbish ones. As lenders know all to well now, if they pick a bad platform lenders are left high and dry.
I have lent money through Funding circle since 2014 , I have had a good return , started out getting 8% , now 5% . There was a problem with excessive defaults for a couple of years but they seem to be getting back on track . They are the market leader in this space and as others fail I believe Funding circle will gain more market share . I think they are a buy at this price .
Investors have totally lost confidence that FCA regulations provides any assurance of p2p sites control environments. I was a lender through funding secure. Lenders are not even the legal beneficiaries of the loans! No wind down plan. Administrators taking large fees from loan proceeds with no visibility of likely outcome for investors. Ex company directors look like they rank higher up as creditors than lenders! Reaction of other site directors....we are not like them. Reaction of FCA and FS directors....not our problem. Until regulation is overhauled the vacuum of confidence will remain. Almost all other p2p investors I know are pulling their money out. Platform risk not loan risk is the killer here.
Dont think they've has it, still running TV ads which arnt cheap but agreed nothing happends here, much more eventful over at mtro and sxx