ONDK will go up in smoke in 18 months...

1) Average annual coupon on entire portfolio was 108% prior to going public. In an effort to gain more business and turn a profit for public shareholders, they lowered prices. Average annual coupon in 2015 was 38%.

2) Also in an attempt to gain more business and turn a profit for public shareholders, they increased payouts to brokers, further squeezing margins.

3) They only have 8% on balance sheet funds. They've built the business with OPM (other peoples' money). At the slightest uptick of danger in the economy, their default rate will go up and lender/marketplace capital will get spooked.

Not to mention, they lie about performing vs. non performing loans by ACH'ing $1 out of accounts from borrowers in default. This way they can keep the loans on the books as "performing" instead of "non-performing".

The market FINALLY is pricing this in.