[Karen37a]

When someone says they "set aside $34.4 million as provisions for bad loans in the fourth quarter, down 38.2 percent from a year earlier."
Which is cutting the reserve funding by an astronomical amount in an industry that is not 100% regulated you need an actuary or to quantify the actual number thru a quant( nothing to compare it to)...it sets off red or yellow flag to those who worked on wall st before and did the Quantitive analysis on the stocks.

It is a huge number and the number can be adjusted to move the earnings number to positive or it could be a one time hit or charge-off or something else less sinister.

Loss reserves are a contra asset that is needed for gross loans rise thru loan loss provisions and also reduced thru charge-offs.

Some banks used overly simplistic measures to value banks loan losses thru the market cash...it was overly simplistic and bad analysis.

The numbers in itself will not cause a correction or move people into a buy mode, with rising interest rates on the horizon and fewer originations (also holding more on the books ) tightened credit standards and more competition.
It also is a hard number to quantify since people use different accounting methods and there is no clear water market or standard for most to compare it to.

....in my simple-minded telemarketer's opinion

Seek out advice from a licensed Financial advisor this is not a buy sell hold recommendation

[JD-Strategic]

manage my portfolio karen

[Karen37a]

manage my portfolio karen

I walked away from Finance because of stress ...made alot of profit ..poof bye.

now stress = mca

[Jess]

When someone says they "set aside $34.4 million as provisions for bad loans in the fourth quarter, down 38.2 percent from a year earlier."
Which is cutting the reserve funding by an astronomical amount in an industry that is not 100% regulated you need an actuary or to quantify the actual number thru a quant( nothing to compare it to)...it sets off red or yellow flag to those who worked on wall st before and did the Quantitive analysis on the stocks.

It is a huge number and the number can be adjusted to move the earnings number to positive or it could be a one time hit or charge-off or something else less sinister.

Loss reserves are a contra asset that is needed for gross loans rise thru loan loss provisions and also reduced thru charge-offs.

Some banks used overly simplistic measures to value banks loan losses thru the market cash...it was overly simplistic and bad analysis.

The numbers in itself will not cause a correction or move people into a buy mode, with rising interest rates on the horizon and fewer originations (also holding more on the books ) tightened credit standards and more competition.
It also is a hard number to quantify since people use different accounting methods and there is no clear water market or standard for most to compare it to.

....in my simple-minded telemarketer's opinion

Seek out advice from a licensed Financial advisor this is not a buy sell hold recommendation

Looked at quickly. 72% ISO Which is consistent

Cash of 71m-that was creative. Average cash balance for the quarter was 51m they delayed paying bills and thru them into accrued. Should expect accrued expenses mirror the decrease in AP. the decrease in AP was 50% decrease in accruals around 20 – but they really wanted to show a high cash balance

Yeah default rate was 15.8 in 2016 and the overall reserve is a little less than 12
At year-end and I didn’t listen to the call but I imagine they could very easily argue Harvey the hurricanes in Florida as well as the wildfires in California as a force majeure.

Huge pick up an earnings was around a $6 million decrease in line item technical and analytical tools the entire $6 million decrease in this line item occurred in the fourth quarter so that is interesting

Since the ISO percentage remained relatively consistent and they substantially reduce their sales and marketing expenses that’s a positive and actually the biggest positive that I see in this earnings release and that I think that they’ve wasted a ton of money in sales and advertising. I think they’re extremely weak and the marketing arena and I think that the reduction sales and marketing did not impact internal originations will show them exactly how bad they are.

Renewals as a percentage of originations increase slightly-they only disclose the rollover Wd amount So assuming average refi balance of 40% Back of the envelope gas is that the renewal book is around 45-

Slight increase in rate to 33% was positive

Looks like Denver might be closed. Better option would be to exit the Australian JV

BV is around 260m so trading at less than 1.5x.

I’m rather indifferent to the stock at this point.

[Karen37a]

jess ...monies can be moved left to right...so I can't really tell until it stabilizes

Cash coming on the books from closings...collection clean up, less staff...don't know what they are going to excess real estate?

To me it isn't pure numbers

If I ever had a way out of this thru a buyout...i would have taken it and restructured because this is a long road.

Competiton is coming


** And I can't even look at lc...hurts my eyes. ick

[Jess]

Correct-it’s easy to manage earnings thru reserves and accruals. It’s normal actually. With reduction in marketing and headcount it’s also easier to see what’s driving business. They could be a really great specialty finance company but they just don’t have a capital to support a high growth tech investment and They have to downsize more and become leaner to support a debt facility. There have been so many changes to their strategy in their balance sheet structure their management team must just be exhausted.

[Karen37a]

Correct-it’s easy to manage earnings thru reserves and accruals. It’s normal actually. With reduction in marketing and headcount it’s also easier to see what’s driving business. They could be a really great specialty finance company but they just don’t have a capital to support a high growth tech investment and They have to downsize more and become leaner to support a debt facility. There have been so many changes to their strategy in their balance sheet structure their management team must just be exhausted.

I agree.

[WestCoastFunding]

Correct.

Please refrain from telling Karen she's correct. For our own good.

[Karen37a]

Please refrain from telling Karen she's correct. For our own good.

lol

[mcaguru]

I would not short this company at this time some company may acquire or perhaps I've seen these play out were new management takes over (like an X CIT kind of human capital guy) and new funds feel comfortable to acquire a share position.

OnDeck Appoints Former CIT Exec Brause as New CFO

http://www.abladvisor.com/news/13648...use-as-new-cfo


sometimes im on it as i wrote that: 08-09-2017, 12:19 PM (OK enough tooting my horn).

[Kevin Henry-Seacoast]

OnDeck Appoints Former CIT Exec Brause as New CFO

http://www.abladvisor.com/news/13648...use-as-new-cfo


sometimes im on it as i wrote that: 08-09-2017, 12:19 PM (OK enough tooting my horn).

If you get an uptick....hit the bid.

[Kevin Henry-Seacoast]

ONDK-Stock fall down go boom....

[mcaguru]

Owtch -- i don't think it deserves that much of a drop -- that's painful.

[Kevin Henry-Seacoast]

Chase has left the building.....

[FOIE GRAS]

Does anyone still have hope in this stock?

[abfunders]

Looks like JP Morgan used them and discarded them like a tissue. Ouch. That never feels good.

“They helped us create and launch an online loan application process that gave business owners faster decisions and easier access to credit, something we will continue to do on our own platform.”

[ADiamond]

the 8k filing reads something like: "The Company took a $0.9 million impairment charge for the quarter ended June 30, 2019 for the remaining capitalized technology supporting JPM originations"

"impairment charge" being a nice way of saying default!!!! Curious to know how that number plays into gross JPM originations %-wise....

[mcaguru]

To me the question was did JMP have an exclusivity and if not i was concerned why other large institutions were NOT using ondeck like chase.

[GoodCustomerService]

Probably nobody cared to use them cause their tech sucks and it doesn't have the value that everyone once assumed it did. Chase sees that now.

[FusionFunding]

edit

Karen, salutations. I hope this weather has been treating you fair.

[SmartAdvanced]

the 8k filing reads something like: "The Company took a $0.9 million impairment charge for the quarter ended June 30, 2019 for the remaining capitalized technology supporting JPM originations"

"impairment charge" being a nice way of saying default!!!! Curious to know how that number plays into gross JPM originations %-wise....

so bottom line - is their book making money or no

[Jess]

so bottom line - is their book making money or no

It's not default-its the capital that they invested in the tech used to facilitate the Chase loans. They are writing it off. Odd that the tech cannot be be used for future bank integrations -if its that tailored to Chased they should have required Chase to share in the cost.

[ADiamond]

To me the question was did JMP have an exclusivity and if not i was concerned why other large institutions were NOT using ondeck like chase.

Large Institution's view on our space:

1) Toxic, sub-prime product - if not from a credit perspective then from a cash-flow perspective that burdens the merchant & their business

2) Unregulated, toxic market - "alternative finance" ???? Big banks ARE finance, they don't need "alternative finance" (SEE: BITCOIN)

3) On deck's stock?

4) See #1 & #2 & #3 - think back to 2007-2008, and then look up definition for "risk-averse"

-

edit-


PS - if my memory serves me correctly - I believe that whole relationship began yearssssss ago when Chase was supplying ODC with lines. I'm sure they did have some sort of exclusivity, if not at first - then eventually.

[Sachip24]

The way I see it Chase used them to learn and understand their Ondeck platform....figured it out...said f' it what do we need them for we can do this ourselves we already have the merchants and know their deposit balances.. Chase is giving out MCA's themselves now so they don't need them anymore and cut off the relationship.

[Mynameisbob]

How about Elevate. Numbers look pretty good.

https://finance.yahoo.com/quote/ELVT/analysis?p=ELVT