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Transaction Details

Company: LendingTree
Ticker:TREE
Yahoo Beta:2.08
Industry:Mortgage investment

Company Description:  The company matches consumers who want to borrow money with lenders online. Consumers complete a questionnaire and the site returns offers from lenders.

Purchase Date:07 Dec 2016 Sale Date:16 Oct 2020
Purchase Price:$98.65 Sale Price:$338.25
  --Split Adjusted:$98.65  --Split Adjusted:$338.35
Shares Purchased:50 Shares Sold:50
  --Split Adjusted:50  --Split Adjusted:50
Transaction Fee:$6.95 Transaction Fee:$0.37
Price Range (6 Months Prior):    Price Range (6 Months After):    
High$111.60 High$0.00
Date10 Aug 2016 Date01 Jan 1996
Low$72.25 Low$0.00
Date17 Jun 2016 Date01 Jan 1996
S&P (Purchase Date):$2,220.39 S&P (Sale Date):$3,506.74

Purchase
Timing:  We bought above the middle of the six month range.
Reason:  LendingTree's model of matching borrowers and lenders gives it exposure to online consumer borrowing without assuming default risk. Our analyst believes that the market has not fully priced in a recent acquisition, Compare Card. Given the recent election of Donald Trump, we believe it is likely that consumer banking regulations put into place after the Great Recession are likely to be loosened.

Sale
Timing:  x
Reason:  Our position has appreciated significantly. Revenues continue to grow, but margins (excluding tax benefits) have fallen. Customer acquisition costs are relatively high, at about $410 per customer, while annual revenue is about $95 per customer. We believe that future stock price growth will slow.

S&P Gain: 57.93 % Annualized Gain: 12.58%
Stock Gain: 242.88 % Annualized Gain: 37.63%

Dividends:$0.00
Net Holding Return ($): $11,972.68
Net Holding Return (%): 242.39 %