I have been researching and building a position in LC (lending club) for the last couple weeks amid the volatility in the market and the stock specifically. For the last week volatility has swung the stock in daily directions of 2% – 4%.
But today of all days it swung up 10%?? I mean considering i already was about half into my expected allocation for this position, Its great, but I am not sure if i am selling because my long-term value target puts upside at $14-$15 per share and the business model is great long-term.
My question here is that what made it shoot up this much, I mean i know the Fed meeting announce a 25BP hike in-line with majority of market expectations and this expected incremental and slower pace of rate hikes will definitely help them and speed up the credit card rollover to consolidation and refinanacing for their super prime customers due to their lag being probably one rate cycle less, but I’m pretty sure a 10% can’t be only from that?
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