This is AWESOME news!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Let's breakdown the $275.
According to lendstats LC has $212 million in outstanding loans
Now they probably have about $35 million in cash
which gives a total of $247 million.
What's the remaining $28 million? Good will assets? Idle lender cash?
Are you actually suggesting that outstanding loans and idle lender cash would directly correlate to the company's market valuation?
Yes to the outstanding loans, but I'm not sure about the idle lender cash, hence the question.
Without taking outstanding loans into consideration, there is NO WAY LendingClub is worth $275 million.
The outstanding loans are assets of LendingClub aren't they? And lenders are unsecured creditors aren't they?
Ratios of (outstanding loans/valuation) from one year ago and today are about equal. Is that just coincidence?
The value of outstanding loans is the number that I think is the most important when talking about profitability (so far no one has agreed with me on that, but that's OK, I have become used to countering public opinion). When that number starts getting close to 1 billion, then we can start talking profitability (and I'm willing to bet that at that time their valuation will also be around 1 billion. Will y'all continue to claim it's just a coincidence then?).