Monday, June 23, 2014

Sell ITB, Buy IFN

Sold ITB $24.24 (25%)
+ Good numbers on May housing set up good day to sell
- Housing recovery getting very long in the tooth
- Interest rate hikes are approaching with every passing day

Bought IFN $25.10
+ Modi getting good press
+ India is set for recovery after several years of sub-par growth
+ Emerging markets have been out of favor for about a year which contributes to attractive price

Tuesday, June 17, 2014

Sell Solar City $65 (12%)

Sell 12% of Solar City (SCTY)
+ Stock up 10% today and up 30% in the last week, setting up selling opportunity
+ Market seems to be over compensating decision to buy panel manufacturer Silevo and create one of the world's largest production facilities
+ Panel business is low margin with lots of money losing Chinese competitors
+ Solar City is my biggest holding, selling 12% maintains diversity

Wednesday, June 11, 2014

LendingMemo Interview with Renaud Laplanche

LendingClub is preparing an IPO. Renaud Laplanche sits down with Simon Cunningham of LendingMemo to explain why.

"There are typically three reasons why a company goes public, though interestingly only one really applies to Lending Club.

The first reason companies have an IPO is to raise capital, especially if they are not yet profitable...

The second reason companies go public is to provide liquidity for existing shareholders...

Really, the last reason is why we are considering an IPO, which is to use it as an opportunity to raise awareness for the company and better establish the brand...

I would like direct retail investors to continue to be 25-30% of the platform, with individual investors (whether direct retail or through a fund) to be more than 50% of the platform. The reason for this is that the retail and individual investor base will be more loyal to us, more predictable and more likely to maintain their investments in an economic downturn."