Out Fox The $treet

GreenSky takes a big hit falling below $10 following weak Q4 EBITDA guidance. All of the fintech stocks have inevitably taken a big hit following going public despite maintaining solid revenue growth. GreenSky maintains strong transaction growth and only trades at 8x EBITDA forecasts. The recent slump in   GreenSky   ( GSKY ) follows a trend in fintech stocks eventually collapsing following high profile IPOs. One has to question whether these modern financials belong in the public markets if a high EBITDA margin company with 30%+ transaction growth isn't rewarded. The stock isn't likely to rally until the company hit financial targets, but the opportunity exists to start scaling into the stock in anticipation of better days ahead. Read the full article on Seeking Alpha.  Disclosure: Long LC, ONDK. Please review the disclaimer page for more details.    

Trump hasn't even taken office yet and the Federal regulators are already proposing regulations that will make it more efficient for FinTechs to operate. The Office of the Comptroller of the Currency proposed allowing FinTech firms to obtain a national bank charter.

The resignation of the founding CEO of LendingClub sent shock waves over the sector. The P2P online lending platform reported huge Q1 growth, but the lack of Q2 guidance questions the impact of the CEO shakeup. The enterprise value is too attractive to pass up unless the new CEO ushers in a new business plan. The fintech sector took another big hit today with the  resignation  of the founding CEO at  LendingClub (NYSE: LC ) . Along with the collapse of  OnDeck Capital (NYSE: ONDK ) , the two primary public fintech stocks are sitting at new lows below $5 each. Read the full article on Seeking Alpha.  Disclosure: ONDK. Please read the disclaimer page for more details.

OnDeck Capital remains a fast growing fintech with revenue growth projected at 30% for the next few years. The stock trades at the lows due to a misunderstanding over the shifting impact of selling loans to institutional investors. The recommendation is to scoop up shares bouncing off all-time lows. The general consensus following the  Q4 earnings report  was that  OnDeck Capital (NYSE: ONDK )  provided weak guidance for Q1. The market though appears highly confused regarding the shifting revenues from the marketplace.  Read the full article on Seeking Alpha.  Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Summary OnDeck Capital released Q2'15 results that easily surpassed internal guidance. The stock recently bounced off all-time lows to start the month. A shift away from balance sheet risk will reward shareholders going forward.   A big difference in the market valuations between OnDeck Capital (NYSE: ONDK ) and LendingClub (NYSE: LC ) is centered on the marketplace focus by the latter. In addition, OnDeck Capital carries the risk of the loans originated on its platform bringing in a higher level of risk and balance sheet requirements adding up to a lower valuation.  Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please read the disclaimer page for more details.

OnDeck Capital continues generating exceptional growth though the stock now trades at the lows. Too much capital chasing too few loans is the biggest risk in the online lending category. OnDeck Capital is a stock to own if it holds the recent bottom around $15. It didn't take long for the exciting fintech category to cool off. Even without a lot of competition for capital in the public markets, a stock like OnDeck Capital (NYSE: ONDK ) is already trading down 50% from the all-time highs. At $15, the stock actually trades right at the lows from earlier this year. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details.