[Zach]

If they made their money this quarter from selling future receivables, can we imply that they've taken some form of a cash advance?

*selling future revenue streams (discounts) is not necessarily a bad thing, as we constantly remind our merchants

[CreditGuy]

You think they're selling them at a discount? I highly doubt that.

[AndyYSCISOdept]

I think there may be some truth/validity to what Zach is saying though. I mean from a revenue/cash flow standpoint it makes perfect sense.

[CreditGuy]

I get it, but it seems to oversimplify the transaction. They might not be realizing the full payback, but in exchange they lay off the credit risk and have the principal and a small premium to reinvest. It greatly accelerates the velocity of their cash cycle. If anything, it is more analogous to factoring, but that is again a simplification.

[Zach]

I get it, but it seems to oversimplify the transaction. They might not be realizing the full payback, but in exchange they lay off the credit risk and have the principal and a small premium to reinvest. It greatly accelerates the velocity of their cash cycle. If anything, it is more analogous to factoring, but that is again a simplification.

Not to mention the additional capital they gain from the increased stock buyers. People see profit and assume they've fixed their problems, but don't pay attention to their bulk selling off of future portfolio revenue. They knew by showing an artificial profit they would have investors flock back to them and it would significantly increase their cash flow. Now they have significant cash on hand for whatever their plan is. Let's see if they use it intelligently.

[BobSchmuck]

It is picking up a lot of momentum.
I think its a good buy, should hit $15 until the end of the year.

ondk.jpg
http://stockcharts.com/h-sc/ui?s=OND...d=p26207332211

[KTK]

$15.80 is the squeeze trigger price. If it manages to cross that price and hold a minute watch out. Monster short squeeze will jump into play

[AndyYSCISOdept]

$15.80 is the squeeze trigger price. If it manages to cross that price and hold a minute watch out. Monster short squeeze will jump into play

KTK Im with you on this one...I guarantee a ton of people got their collective finger(s) on that button just waiting to get out!

[KTK]

Andy - The guy who taught me the methodology of the short squeeze is literally the guy who fought congress along side of Harvey Pit, ex SEC Chairman, to change the reporting laws surrounding naked shorts, Reg SHO. A dear friend. He has made a career out of uncovering stocks with bullish patterns developing within stocks approaching their "squeeze trigger" price. He gave me the $15.80 squeeze price actually. And he taught me one valuable lesson that I will never forget:

"People lie, but math never will" it's pure mechanics once these guys go out of the money. They chase that "ask" to kingdom come.

I have a personal hatred towards these manipulative short sellers. Not saying making a play on a negative trend isn't fair game. Being able to make money on stocks going down is fair game and it's evened the playing field. That said, trying to make a buck while driving companies out of business or making it nearly impossible to raise cash (my theory behind the ONDK lawsuits) is bad form. Plus most mom and pop investors are just buying whatever Jim Cramer says long in their Scottrade account. Then here comes Bill Ackman, or the like, with BS press releases and crushes their trading account.

I like to see stocks go UP! And I LOVE a good squuueeeezzzeee. Watching a billion dollar fund chase a stock to minimize its 7/8 figure loss makes me smile. Maybe next time they won't bet their quarter on another's downfall.

Ok, rant over.....

[John Galt]

Bulls make money, Bears make money. Hogs get slaughtered. Markets have a million ways to play the game, write or sell options buy spreads or straddles etc, but I would be leary of a stock that went from $27 to 9 and is now 11. In addition Cramer never made any money for his people at his fund. He is an actor, nothing else. It's Hollywood.

[John Galt]

PS: First "real" short squeeze was the Hunt brothers in the futures markets. When they squeezed silver in 79 the CFTC actually had to declare emergency procedures and stop all shorts, stop all margin and declare shorts didn't have to deliver. They did the same for sugar before. Caused the crash of Gold and Silver in 80.

[John Galt]

PPS, they lost over 2 bill in 80. Family net worth went from 6 bill to 1 and change. I was one of the brokers at Bache handling the accounts before Pru bought us.

[Advance Smart]

All this talk about On Deck's stock and nobody mentions Lending Club? I see said the blind man. Definitely keeping a close eye on both.