[KTK]

Sean - Very interesting to take a quick look at the IOU vs ONDK stock scenario. Thanks for pointing it out. I was actually unaware they were public before today. I got curious and took a look at IOU's structure tonight for the first time.

Comparing the two on origination VS revenue - ONDK trumps IOU. On $1.2B ONDK see's about 13.2% or $158M gross. On the other hand $100M equals roughly 6% or $6M gross for IOU. IOU's credit facility clearly takes the lions share.

Share structure they are almost equal on shares OUT. 69.59M for ONDK. IOU shows 53.7M. However, fully diluted they are more like 66.4M. They just diluted the company by 12% in exchange for $3M for "working capital". To a shareholder that should be terrifying actually. (to bad they can't fund themselves lol)

Both company's are trading almost identically at roughly 4X revenue at the moment.

Interesting note - IOU has more than 2X ONDK in the float. Over 47M shares in the float, which will likely increase by 5%-10% in the next 6-9 months, for IOU. Everybody's cost is probably under $0.50 (CAD). If that stock wants to move upwards it could be a heavy climb up with that much stock in the way. The insiders hold almost none of it, so if the market sees $1.00/share (CAD) you could easily see 30M shares of pressure on the sell side booking 100% in profits. This is a thinly traded security. That much hitting the bid could be a temporary KO.

Another note - ONDK already did a monster raise with its IPO and put a lot of cash in the bank generating that share structure. If IOU were to make an attempt at further strengthening its balance sheet, which they undoubtedly need to (and based on the current litigation they are), they will see much heavier dilution along the way. 7M shares just to get their hands on $3M about a month or so ago. Also we will more than likely see a reverse split, which never sits well on Wall St.

Doing a quick "apples vs apples" comparison, based on my non-professional fundamental analysis, I would say they are closely matched between each other in terms of value at the moment. However, ondeck is light years ahead of them and if IOU wants to try and catch up it will heavily uneven the playing field in ONDK's favor.

That all said I think ONDK is the better long term play. IOU, if the liquidity were to increase, could be more fun and profitable to trade on the likely future volatile swings.

Anyway - I am by no means a financial analyst, this is my novice opinion, and there are countless other factors I didn't look at like margins, ebitda, etc etc. It was purely a fun academic exercise and thought I would share. Why not, right? LOL

[anonymous]

Hey, at least he went to college. Can't be said for everyone on these boards.

...and we're all very proud of you haha