On Deck Capital, Inc. (NASDAQ: ONDK)
On Deck Capital, Inc. (ONDK), a company that provides financing products to small businesses confirmed on Monday that they have partnered up with JPMorgan Chase to provide a new type of small dollar loan product designed to help small business customers.
JPMorgan Chase CEO Comments
“We haven’t announced it yet, we’re going to be doing a thing with one of these peer-to-peer, small-business lenders,” Dimon said Tuesday in a panel discussion in Washington. “The kind of stuff we don’t want to do or can’t do, but there’s somebody else who can do it and do it probably well. So this is going to be collaborative.”
“Some of this peer-to-peer stuff will end up being good; it won’t all be good,” Dimon said. “You can use big data, all this other data, non-traditional data, could determine whether someone is a good credit or not.” Bloomberg
ONDK Technical Analysis
ONDK gapped up in price yesterday to $12.45, up from the prior day’s close of $9.01, which is a 38% increase on the favorable news. Taking a look at the daily chart, we can see the last time ONDK traded at this price level was on August 3rd, when it traded at highs of $13.38. Taking a further look back on the daily chart we can see that ONDK has been on an overall decline dating back to March 24th when it traded at $23.47. The next possible resistance level for this move up would be $13.50. ONDK has a low float of 20.10 million shares and was trading 12 times the normal daily trading volume. ONDK did reach pre market highs of $12.90, but gave back $0.45 at the open, or equivalent to 3%. For trading purposes, my entry point would have been $12.50 looking for a run up to $13. My stop loss would have been $12.40, fearing anything below that and the stock would start to fill in the gap up.
On Deck Capital, Inc., incorporated on May 4, 2006, is an online platform for small business lending. The Company aggregates and analyzes data points from disparate data sources to assess the creditworthiness of small businesses. Small businesses apply for a term loan or line of credit on the Company’s Website and, using its OnDeck Score, the Company makes a funding decision and transfers the funds. The Company offers two products to small businesses to access capital: term loans and lines of credit. The Company’s end-to-end integrated platform includes the Company’s Website, which allows small businesses to apply for a loan in minutes, around the clock; data and analytics engine, analyzes thousands of data attributes from disparate sources to assess the real-time creditworthiness of a small business; the technology, which offers seamless funding of loans, and daily and weekly collections and ongoing servicing system.
The Company originates small business loans through three channels: direct marketing, including direct mail, social media and other online marketing channels; through referrals from strategic partners, including banks, payment processors and small business-focused service providers, and through funding advisors who advise small businesses on available funding options. The customers apply for a loan directly on the Website and also contact the Company through other means, such as by telephone or through a strategic partner or funding advisor. The Company offers term loans and lines of credit to its customers in the United States and term loans to its customers in Canada. Reuters