Opinion on Bank of Internet

[straddle]

I was looking at WebBank and that led me to SPLP, the publicly taded company that owns them. And of course in my research on that, I found Bank of Internet (BOFI) which is how OnDeck Capital (ONDK) makes their loans. BOFI is up around 35% over the last 2 years.

I am thinking that SPLP is undervalued but am also wondering if BOFI might have a lot more upside potential yet to be realized.

Thoughts?

[argyle]

I was looking at WebBank and that led me to SPLP, the publicly taded company that owns them. And of course in my research on that, I found Bank of Internet (BOFI) which is how OnDeck Capital (ONDK) makes their loans. BOFI is up around 35% over the last 2 years.

I am thinking that SPLP is undervalued but am also wondering if BOFI might have a lot more upside potential yet to be realized.

Thoughts?

I don't know but I am getting a bad feeling from these lending companies overall. Just something in my gut. From what I know they have high interest rates and there all experiencing wild fast growth but making no $$$$.

[platformlending]

I was looking at WebBank and that led me to SPLP, the publicly taded company that owns them. And of course in my research on that, I found Bank of Internet (BOFI) which is how OnDeck Capital (ONDK) makes their loans. BOFI is up around 35% over the last 2 years.

I am thinking that SPLP is undervalued but am also wondering if BOFI might have a lot more upside potential yet to be realized.

Thoughts?

I think so. i don't think BOFI holds the paper on loans it "originates". I believe it just earns fees and that it's a volume game. It looks like investors have discovered this stock already though. Doesn't mean it's not undervalued...

[Loans]

Web bank and bank of the internet are chartered banks that allow certain funders to place loans in all 50 states. I believe both sell back the loan after it funds to the lender. Lending in all 50 states with just a state license won't cover you in all states. These banks are making significant fees but are not the servicing agents of the loans.