Results 1 to 25 of 25
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02-11-2015, 12:11 PM #1
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- Feb 2014
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- 23
On Deck Capital: Bad Loans, Bad Rates, Bad Business Plan
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02-11-2015, 03:31 PM #2
- Join Date
- Dec 2013
- Posts
- 4,713
interesting Clip about ONDECK
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02-11-2015, 05:55 PM #3
I did not buy, I am glad I did not buy, this stock is going to drop. Give it a month, give it 6 months, but it will happen.
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02-11-2015, 06:00 PM #4
Check out the total salary, stock options and incentive pay for them:
CEO Breslow ~$866,000
COO Hobson ~$540,000
CFO Katzenberg ~$607,000
Total ~$2,013,000
So executives are making almost six times as much money as On Deck reported clearing last quarter!
Conclusion:
Share prices screamed as IPO-eager investors jumped on On Deck, largely believed to be a technology play rather than a payday loan company for small businesses.
Now On Deck faces use of shady brokers, growing competition, out-of-line executive compensation, massive debt, anticipated new strict regulations, and bad loan losses chewing up revenue.
Additionally, 56 million shares will become unlocked and may be sold on June 3. With 66.2 million shares outstanding, possibly dumping almost that many On Deck shares again on the market creates another negative catalyst.
At the foundation is On Deck’s unsustainable business model. Making easy-qualifying, quick loans to desperate small businesses and charging them 50 percent-plus interest rates reminds us of the sub-prime loan debacle.
On Deck is a disaster just waiting to happen.
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02-11-2015, 06:01 PM #5
The day of reckoning has been set
Over 56 million shares unlock on June 3. With 66.2 million shares outstanding, the risk of dumping almost that many shares again on the market creates a stunning negative catalyst.
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02-11-2015, 06:03 PM #6
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02-11-2015, 06:06 PM #7
Welcome to the REAL world of high finance
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02-11-2015, 06:06 PM #8
The really incredible part, which I do not think people really realized until now, was that the CEO Noah Breslow has a higher salary then what they cleared last quarter. Can anybody imagine this happening at Costco or Home Depot? The stockbrokers would have the CEO fired in a second!!! Forget crazy fees Chambo, how unreasonable is that???
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02-11-2015, 06:29 PM #9
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02-11-2015, 06:31 PM #10
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02-11-2015, 08:57 PM #11
True, but that was more of a general post-IPO drop. Not saying that it happens every time, just saying it happens, when there is too much hype. But when the 62 million shares hits the streets, then the sharks will smell the blood, and everyone will explain what a bad idea it was to buy the company.
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02-12-2015, 11:35 AM #12
- Join Date
- Sep 2014
- Posts
- 430
"So let’s take the actual dollars lost or $26.7 million lost in loans charged-off in the last nine months. And look at that as a percentage of the last nine months’ gross revenue of $107.6 million.
That works out to a whopping loan loss of 24.8 percent."
Did bizloanbroker do this math? Gross revenues don't include repayments of principal, but the loss figure includes principal written off. That's the only way to arrive at a loss rate in the 20s and it is ignorant of accounting practices within the finance industry.
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02-12-2015, 11:43 AM #13
I always thought their default rate was in the mid 20's but that was just a theory, Did Bizloan and Creditguy run the numbers?
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02-12-2015, 11:46 AM #14
- Join Date
- Sep 2014
- Posts
- 430
I pulled the numbers our of the securitization and S-1 filings here.
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02-12-2015, 11:58 AM #15
if their real default rate is 24.8% they must be hemorrhaging money......
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02-12-2015, 12:02 PM #16
Thats a scary number if its true.. That will make the earnings call they have coming up very interesting
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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02-12-2015, 12:13 PM #17
if that's the real number then how did they ever pull off the securitization?
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02-12-2015, 12:17 PM #18
- Join Date
- Aug 2014
- Posts
- 30
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02-12-2015, 12:18 PM #19
- Join Date
- Aug 2014
- Posts
- 30
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02-12-2015, 12:28 PM #20
- Join Date
- Jan 2015
- Posts
- 127
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02-12-2015, 01:15 PM #21
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02-12-2015, 04:55 PM #22
- Join Date
- Sep 2014
- Posts
- 430
That so many people here are so bad at math and facts, yet involved in credit and finance, is staggering.
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02-12-2015, 06:08 PM #23
- Join Date
- Jun 2014
- Posts
- 59
Anyone else notice ODC taking 2nds on deals?
Used to be rare to see that.
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02-12-2015, 06:19 PM #24
- Join Date
- Jan 2015
- Posts
- 127
I think they have some deals that the fall thru the cracks since they have been trying to fund deals so quickly, but the last thing need is to get in the stacking game...They offer some of the best rates in our industry and they're geting attacked in the media about predatory lending, imagine how the articles would look if they were stacking deals.
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02-12-2015, 06:25 PM #25
- Join Date
- Jun 2014
- Posts
- 59
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