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Actionable news in YRD: Yirendai Ltd,

Stay Away From Yirendai, the Last IPO of the Year

Yirendai is also a part of a trend in finance: the rise of Fintech writ large and peer-to-peer lending in particular. While the market does not always appreciate trends, this company was not looking to bail itself out with an IPO.

Why to Stay Away

The company filed for an IPO with the SEC back in February of this year. Initially the company suggested that it would raise $300 million from an IPO and gave an estimated valuation of its platform at $2 billion. The company raised $75 million and is currently valued around $925 million.

Even in November, the company was hoping for a $100 million IPO. The consistent and major declines in its estimations did not look good for the company. This was especially true when investors consider the dilemma that U.S...