[bizloanbroker]

I am short 1000 shares of ONDK!!!!

[isaacdstern]

hah...you must have used a broker, the online trading platforms wont allow it

[mcaguru]

Shorting is a VERY risky move in general, your responsible to buy the shares back at the price it trades. so if the stock slowly climbs to 30 stays there for a year and then on a sunny morning you wake up to the news that Capital One acquires the company for 72 bucks your responsible for 72K. ( i am in NO way stating that scenario is going to happen).
the better option would be perhaps to "straddle" on deck

[isaacdstern]

Straddle...that sounds like an old Mikey Sweats poker move

[Chambo]

I am short 1000 shares of ONDK!!!!

If you are short the stock, it is an illegal short. You cannot short an IPO for the first 30 days. You had better hope the SEC doesn't find out.

I seriously doubt if a broker did that trade for you, as they could lose their job for doing that

[Chambo]

Shorting is a VERY risky move in general, your responsible to buy the shares back at the price it trades. so if the stock slowly climbs to 30 stays there for a year and then on a sunny morning you wake up to the news that Capital One acquires the company for 72 bucks your responsible for 72K. ( i am in NO way stating that scenario is going to happen).
the better option would be perhaps to "straddle" on deck

What do you know about options? And what broker in their right mind cleared you to trade options?

[channin19]

If you are short the stock, it is an illegal short. You cannot short an IPO for the first 30 days. You had better hope the SEC doesn't find out.

I seriously doubt if a broker did that trade for you, as they could lose their job for doing that

An underwriter cannot lend shares to short in the first 30 days.

[CreditGuy]

The SEC guidance states that underwriters are prohibited from lending shares to establish shorts for the first 30 days, but there is not similar guidance that limits institutional or other investors that obtained shares during the IPO. If it is a naked short position, no shares need be borrowed to establish the short position.

[Chambo]

The SEC guidance states that underwriters are prohibited from lending shares to establish shorts for the first 30 days, but there is not similar guidance that limits institutional or other investors that obtained shares during the IPO. If it is a naked short position, no shares need be borrowed to establish the short position.

My question still stands....since a true naked short is the only investment vehicle out there with unlimited loss potential, what broker or Broker/Dealer in their right mind would allow you to conduct such a trade?

[mcaguru]

my comment was if someone feels that ON Deck is a short, then i suggested, its better to straddle then be Short..i personally shorted 4 Stocks in my lifetime... 2 oil rig operators after the spill off New Orleans (made out OK) heartland payment after the big data breech (made a killing) and an airline ALGT while gas prices were skyrocketing and i got KILLED big time. (BTW, i am not MS's). my point is shorting is good for when like you wake up in the morning and find out people in 13 states are in hospital from a bad food batch at jack-in-the-box or those kinds of scenarios, otherwise smart money should never be betting against a large corporation.

[Chambo]

my comment was if someone feels that ON Deck is a short, then i suggested, its better to straddle then be Short..i personally shorted 4 Stocks in my lifetime... 2 oil rig operators after the spill off New Orleans (made out OK) heartland payment after the big data breech (made a killing) and an airline ALGT while gas prices were skyrocketing and i got KILLED big time. (BTW, i am not MS's). my point is shorting is good for when like you wake up in the morning and find out people in 13 states are in hospital from a bad food batch at jack-in-the-box or those kinds of scenarios, otherwise smart money should never be betting against a large corporation.

Well, you have to wait a month regrdless

[CreditGuy]

what broker or Broker/Dealer in their right mind would allow you to conduct such a trade?

I'm not trading anything.

[Chambo]

OnDeck Capital Inc.ONDK -0.16% has been public for less than one month, but one analyst has already rated the small-loan lender twice – and it’s not because he’s become more enamored of the name.

Last week Sterne Agee analyst Henry Coffey weighed in on OnDeck Capital, one of a crop of alternative lenders that have gone public in the past several months. On Jan. 8, Mr. Coffey gave OnDeck a neutral rating and a $20 price target.

On Monday, Mr. Coffey cut his rating to underperform and slashed the company’s price target to $15.75. That would value the company at about 26 times Sterne Agee’s 2016 adjusted earnings estimate; that’s half the multiple at which rival online lender Lending Club Corp.LC -5.25% now trades, based on the analyst consensus, according to FactSet.

OnDeck has sought to be labeled by investors as a high-growth technology company with a platform to link small business borrowers and lenders. During its IPO roadshow, the company sought to pitch its stock to tech investors rather than to financial analysts, a person familiar with the pitch said. Instead, Mr. Coffey said he and his team have come to the conclusion that it should be considered a high-growth specialty finance lender.

When looking at OnDeck as a finance company, he wrote, investors will be looking at the quality of its loans and borrowers, competition, and potentially regulatory issues, rather than the growth in loan origination and revenue. Mr. Coffey expects to see “considerable growth in both loan originations and revenue,” but he said that’s not enough.

Meanwhile, the money moving into this space will inevitably cause regulators to take a closer look at alternative lenders, which could crimp their growth.

“In some ways, the rapidly growing marketplace lending and P2P business reminds us of the U.S. prepaid card business five years ago,” Mr. Coffey writes, citing Green Dot Corp. and NetSpend, now owned by Total System Services. Both companies, initially outside the purview of banking and consumer regulators, quickly came under their scrutiny, which caused their growth to slow and profit margins to compress.

Mr. Coffey thinks that OnDeck, Lending Club Corp. (which went public in December a week before OnDeck) and other entrants into the peer-to-peer and alternative lending space could potentially suffer a similar fate.

While investors were giddy over the potential of the sector a month ago, it has already lost some of its luster for investors. OnDeck’s shares dropped nearly 9% on Monday. Its stock has been sliding since its second day of trading after popping 40% on its first day. After Monday’s slide, OnDeck’s shares are just 3% above the company’s IPO price.

Meanwhile, Lending Club’s shares are trading around $21 a share, up 40% from its IPO price, but down 24% from its post-IPO high.

[bizloanbroker]

up a ton on my ONDK short from a few weeks ago.

The stock is going to $5.

After they report earnings the stock will tank again

[fundgorilla]

I was told on the street to wait for an IPO to break down through the offering price two times before establishing a long position.

[Guy In The Know]

anyone think their stock can get to $30+? any ONDK bulls out there?

[Sean Cash]

anyone think their stock can get to $30+? any ONDK bulls out there?

Maybe if they do something productive with their money. Just using it to "do more marketing" or "more funding" isn't going to cut it. They should buy Kabbage.

Similar workspace culture, both tech oriented, and OnDeck would double their marketshare overnight. Kabbage originates deals on their own and doesn't rely on brokers. That's a huge plus.

Buy Kabbage.

[MCAVeteran]

They may not have relied on ISos to this point but I have seen them at ISO sales conferences and they are looking at ISos to grow their business even if it's supplemental. How much of their business is ISo driven is unknown.

[blKC]

They list their ISO driven % in their IPO documents. Whether that is accurate or not I don't know. Everything isn't clearly defined.

[channin19]

They may not have relied on ISos to this point but I have seen them at ISO sales conferences and they are looking at ISos to grow their business even if it's supplemental. How much of their business is ISo driven is unknown.

I'd disagree. OnDeck relied heavily on ISO business to get to this point. There inside sales really only took off in the last 12 months or so. That is why their inside sales growth looked so great in their IPO deck. If I remember correctly it stated that just 4 partners were responsible for 10% of total origination.

[MCAVeteran]

I'd disagree. OnDeck relied heavily on ISO business to get to this point. There inside sales really only took off in the last 12 months or so. That is why their inside sales growth looked so great in their IPO deck. If I remember correctly it stated that just 4 partners were responsible for 10% of total origination.

My post was in regards to Kabbage. The earlier post said originate all their deals without brokers. They def are trying to make a footprint in the ISo space for business or at least selective ISo business-

We all know on deck did hundreds of millions over the years from brokers-

[Sean Cash]

I have heard about them looking into the broker market as well but they scaled to their current size without them.

[mcg168]

They have been actively recruiting my company to send more deals to them, which is surprising since I have heard so much about them cutting ties with ISO's

On a somewhat related note. they still absolutely take ISO deals/declines and funnel them to their outside sales partners.

[Chambo]

On Deck has been funneling declines to their preferred ISO(s) for years, nothing new there