[MCNetwork]

I hardly think there aren't issues. Many investors took a bath in that stock!

[isaacdstern]

No shocker here guys, the stock loses 70 percent of its high and lawyers start attacking. Some of the things they are highlighting are serious issues like the default rate and value of the portfolio

[skideeppow]

Wow, that is a tough read. They sure reacted quick, stock has only been on market for 7 months and already a class actions. I guess when you lose that much value, there is an issue.

[mcaguru]

What now ? My stock guru claims when stuff like this happens in order to keep the bears from licking chops they bring in like an X ceo of Capital One to start feeding the bulls...Mr Stern any input? and keep in mind to disclose your short positions if you have any??!!

If i was a betting man its time to go LONG but Ive said that at 18 Bucks

[ADiamond]

did anyone ever stop to think that maybe the reason for the decline in price is that perhaps it was over valued to begin with?

[Chambo]

Isaac any update on that or is it just lawyers trying to find issues when there is nothing there ?

"The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the true rate of default for the Company’s loan portfolio was steadily increasing; (2) the true value of the Company’s loan portfolio was in material decline; and (3) as a result of the foregoing, On Deck’s public statements were materially false and misleading at all relevant times."

[Chambo]

No shocker here guys, the stock loses 70 percent of its high and lawyers start attacking. Some of the things they are highlighting are serious issues like the default rate and value of the portfolio

Still think MCC and CAN are going to run out and go public?

[Chambo]

"On February 11, 2015, less than two months after the IPO, SeekingAlpha.com published an article entitled “On-Deck Capital: Bad Loans, Bad Interest Rates, Bad Business Plan.” The article described, in part, how the Company’s Registration Statement significantly understated the default rate for the Company’s loan portfolio."

We all said their reported default rate was malarky

[mcg168]

I dont submit deals thru ONDK, never have, but if I did have a portfolio with them I would seriously start thinking about sending my A Paper deals elsewhere.

[Sean Cash]

Still think MCC and CAN are going to run out and go public?

The thing is with CAN is that they don't need to go public. They've been in biz for close to 17 years. They don't need the money. I'm sure they could find some good things to do with it but they're a mature company, not a tech startup rushing to the next financing round hoping to keep their marketing humming and valuation increasing. If I was CAN, I would use money from an IPO for acquisitions, but also I would consider passing on an IPO altogether, if for no other reason than to prevent the headache of shareholders, stock analysts, and everybody else scrutinizing what the CEO ate for breakfast.

[Chambo]

The thing is with CAN is that they don't need to go public. They've been in biz for close to 17 years. They don't need the money. I'm sure they could find some good things to do with it but they're a mature company, not a tech startup rushing to the next financing round hoping to keep their marketing humming and valuation increasing. If I was CAN, I would use money from an IPO for acquisitions, but also I would consider passing on an IPO altogether, if for no other reason than to prevent the headache of shareholders, stock analysts, and everybody else scrutinizing what the CEO ate for breakfast.

You say "scrutinizing what a CEO had for breakfast", I say EXPOSING FRAUDSTERS & LIARS

[Chambo]

If ONDK is going through this sort of scrutiny, MCC would get taken out to the shed and executed

[mcg168]

If ONDK is going through this sort of scrutiny, MCC would get taken out to the shed and executed

Couldnt agree more...and its just as crazy that MCC is leading the charge to have regulation.

[Chambo]

"The significant drop in share price came after news reports of rising default rates in On Deck's loan portfolios and declining value of its business model. The Company is now reportedly losing tens of millions of dollars through defaults on its loans, likely due to the company's reliance on stated income and data from third-party sources, which may contain inaccuracies."

[MCNetwork]

"The Company is now reportedly losing tens of millions of dollars through defaults on its loans, likely due to the company's reliance on stated income and data from third-party sources, which may contain inaccuracies."

That and the fact that they can approve a merchant for funding based on one or two bank statements with no regard to seasonality and other common sense factors.

[Mmarano]

Maybe 90% is an exaggeration. The % is extremely high.

You don't really believe that, do you?

[FUNd]

Maybe 90% is an exaggeration. The % is extremely high.

Isn't it safe to say that >90% of businesses have received a cold call, mailer, or other type of marketing for MCA? It is very rare we talk to someone who has never even heard of it. With all the players in the space, there are very few (if any) stones unturned.

[Mmarano]

You're such a troll bro. Lol.

If ONDK is going through this sort of scrutiny, MCC would get taken out to the shed and executed

[Sean Cash]

Isn't it safe to say that >90% of businesses have received a cold call, mailer, or other type of marketing for MCA? It is very rare we talk to someone who has never even heard of it. With all the players in the space, there are very few (if any) stones unturned.

My aunt owns a fitness center and for several years she told me she never heard or encountered anything like the financing products I had described to her. That changed over the last 12 months when she started getting bombarded by mailers. She scanned some in and sent them to me via facebook and was like, "is this the stuff you have been talking about all along?" and I told her it was.

Even as of a year ago, there was a good shot that 90% of businesses had never heard of it. In 2012, I did a presentation to members of the Manhattan Chamber of commerce and nobody in the room had heard of anything remotely like MCA or anything non-bank related. People actually came up to me afterwards to congratulate me on the idea they thought I had invented.

[Mmarano]

I know. The market has not seen nearly its full potential. Thanks for commenting on this Sean.

My aunt owns a fitness center and for several years she told me she never heard or encountered anything like the financing products I had described to her. That changed over the last 12 months when she started getting bombarded by mailers. She scanned some in and sent them to me via facebook and was like, "is this the stuff you have been talking about all along?" and I told her it was.

Even as of a year ago, there was a good shot that 90% of businesses had never heard of it. In 2012, I did a presentation to members of the Manhattan Chamber of commerce and nobody in the room had heard of anything remotely like MCA or anything non-bank related. People actually came up to me afterwards to congratulate me on the idea they thought I had invented.

[FUNd]

My aunt owns a fitness center and for several years she told me she never heard or encountered anything like the financing products I had described to her. That changed over the last 12 months when she started getting bombarded by mailers. She scanned some in and sent them to me via facebook and was like, "is this the stuff you have been talking about all along?" and I told her it was.

Even as of a year ago, there was a good shot that 90% of businesses had never heard of it. In 2012, I did a presentation to members of the Manhattan Chamber of commerce and nobody in the room had heard of anything remotely like MCA or anything non-bank related. People actually came up to me afterwards to congratulate me on the idea they thought I had invented.

If these numbers are accurate, you've made my day.

[MCNetwork]

It is very rare we talk to someone who has never even heard of it. With all the players in the space, there are very few (if any) stones unturned.

Depends on your lead source. If you only call UCC's then everyone would have heard of it. 70% of the deals I fund per month don't even know what a cash advance is. We're still scratching the surface of the market's potential, especially since we're constantly qualifying new SIC codes.

[Michael I]

That and the fact that they can approve a merchant for funding based on one or two bank statements with no regard to seasonality and other common sense factors.

I had a merchant that got money from iOu , Everest/Yellowstone and wall taking out about 26 percent of growth . Rough but not terrible. 2 weeks later on deck funds him pulling 30 percent of growth ( if you look at a full year ) now merchant is paying 56 percent there is no way this guy won't default.
They don't ask for the recent statements and I guess those 3 companies don't file ucc .crazy

[anydealfunded]

All due respect...do you mean gross or "growth"

[MCNetwork]

All due respect...do you mean gross or "growth"

He probably has a lisp...